Rihanna sues former accountants; lawsuit claims she lost millions of dollars due to ‘mismanagement’

By on Jul 7, 2012 in Entertainment, Hollywood, United States Comments

Pop singer Rihanna sued her former accountants, claiming that she lost millions of dollars because of their ‘mismanagement’ of her finances and that they failed to recommend reducing her expenses during a concert tour. She fired her accounting firm in September 2010, along with its accountants.

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According to Los Angeles Times on Thursday, July 5, 2012, Rihanna filed the case that day in a federal court in Manhattan against her former accounting firm, Berdon LLP, and two accountants, and claimed that her finances were mismanaged over the years they spent their services to her.

As noted in the report, Rihanna used her real name Robyn Fenty in the lawsuit, where it stated that she hired Berdon back in 2005 when she was only 16 years old and her music career was just rising in her native Barbados, but claiming that she lost millions of dollars from that year until 2010 because of them.

“Because she was a minor with no knowledge of the music industry or financial matters generally, Fenty placed Berdon in a position of trust and loyalty.” A statement reads in the lawsuit, as quoted at LA Times, adding that her Tourihanna concert tour company, which was then handled by Berdon, suffered “significant financial losses” throughout the years.

In addition, the lawsuit said that there was a “gross mismanagement” of the 24-year old singer’s finances during her 2010 “Last Girl on Earth” tour that cost her millions of dollars, and accused the law firm for its poor record-keeping, in which she is now being audited by the Internal Revenue Service (IRS).

Allegedly, Rihanna‘s revenue and expenses were not taken into account properly and that her “personal net worth and long-term wealth” was not maximized accordingly. As of this writing, Berdon has not yet released any comment on this matter.

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