Rihanna Sues Former Accountants, Claims They Cost Her Millions [Details]
Rucuss staffJuly 6, 2012
Rihanna is suing her former accountants claiming they stole millions from her and gave her bad financial advice.
The pop superstar is being audited by the IRS and blames The Berdon Firm. She claims the audit is a direct result of their negligence. According to the Wall Street Journal, the suit filed in federal court in Manhattan last week accuses Rihanna’s former accounting firm, Berdon LLP, and two accountants of causing unspecified “significant financial losses.” The suit also claims that “gross mismanagement” of the singer’s finances cost her millions during the “Girl” tour.
The lawsuit accuses the accountants of “financial mismanagement and other acts of omission.” The suit details Rihanna’s rise from a 16-year-old industry newbie who signed with the Island Def Jam Music Group after moving from her native Barbados to the U.S. calling her a “financial amateur” who placed her trust in her accountants as she rose from obscurity to global fame. The suit notes that Berdon was hired to provide the then-16-year-old singer with “accounting, business and financial management services for all aspects of her rapidly growing music career.”
Rihanna claims they defrauded her and her Tourihanna company out of tens of millions of dollars, while hiding the true state of her finances and charging exorbitant and excessive commissions that exceeded her own income.
RiRi accuses Berdon and the two accountants of setting up an improper financial arrangement that netted the firm 23% of her income while giving her only 6%. She blames Berdon for her misguided home purchase in 2009, claiming they failed to explain the true nature of her financial situation at that time.
Rihanna seeks unspecified damages.
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