Rihanna files lawsuit on her ex- accountants for financial mess

Pop Star Rihanna has filed a law suit in Manhattan Federal Court on her former accountants for mismanaging her finances that included serious charges of earning huge commissions from concert tours by the accountants that resulted in her losing millions of dollars. The Bajan beauty along with her tour company Tourihanna is seeking an unspecified amount as compensatory damages and loss of earnings from the New York based- accounting firm Berdon LLP.

The singer filed the law suit under her real name Robyn Fenty on Tuesday just before the Independence Day. She claims that firm has caused enormous financial losses between 2005 and 2010 by charging “steep” commissions from Rihanna’s “Last Girl on Earth” tour. She informed that she hired the accountants in the year-2005 when she was sixteen years old and was introduced to them by her music management company.

Despite the large revenues that were earned during 2010 on “Last Girl on Earth” tour, Rihanna alleges that the accountancy firm engaged in misconduct, malfeasance that resulted in Tourihanna suffering significant losses. Rihanna produced a string of worldwide hits that included the “Umbrella” and “We Found Love”. The law suit also mentioned that the accountants concealed facts pertaining to her finances and in a deal earned unusual commissions based on the percentage of Rihanna’s gross receipts that were quite expensive and usurious.

The lawsuit also added that the accountancy firm also assumed control over the singer’s affairs beyond the industry standards and had failed to maximize her long term wealth and personal net worth. The lawsuit asserted that the Rihanna lost millions of dollars during the “Last Girl on Earth” tour after the accounting firm failed to reconcile costs versus the revenues while still paying it millions in fees.  Between 2007 and 2010, the accountants earned millions in commissions in the tour gross receipts that equals to about 23 percent of the total tour income, compared with 6 percent for Rihanna.

The singer further claims that the IRS is now auditing her accounts due to the mishandling of tax returns by Berdon LLP. The law suit includes claims for negligence, breach of fiduciary duty, breach of contract and unjust enrichment.

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