Rihanna Sues Former Accountants

Pop star Rihanna is suing her former accountants, Berdon LLP, as well as two other accountants for unspecified "significant financial losses." Rihanna Sues Former Accountants

Umbrella singer Rihanna has filed a lawsuit against her former accountants after the entertainer says she lost millions on her 2010 ‘Last Girl on Earth’ tour. Confirmed by MTV, the suit that was filed in a federal court in Manhattan accuses the performer’s accountants of "financial mismanagement and other acts of omission."  Per reports the firm based their commissions on Rihanna's gross receipts, a procedure that is not "a standard mode of operation in the industry."  The commission was said to have amounted to 22 percent of the tour's total revenues, with Rihanna only receiving roughly six percent of that.

The suit calls upon the accounting firm, Berdon LLP, and two accountants for their failure to provide the proper "accounting, business and financial management services for all aspects of her rapidly growing music career."  Rihanna was previously working with the firm when she first entered the industry at the young age of sixteen years old.  According to the court papers filed, the singer states that "because she was a minor with no knowledge of the music industry or financial matters generally, Fenty [Rihanna's last name] placed Berdon in a position of trust and loyalty."

So far Berdon has not issued a comment over the lawsuit that pinpoints both their lack of counseling for the young singer at the time, as well as their communication issues of informing Rihanna of her finances and creating a solid budget for the tour.  More news regarding Rihanna's legal matters is sure to be on the way. 

Written on Jul 06 2012 by Sarah Luoma (Google+ profile), writer at KOvideo. Tags: rihanna lawsuit accountants


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