Rihanna Sues Ex-Accountants Claiming Negligence
Two accountants along with Berdon LLP based in New York, who formerly worked for Rihanna, have been sued by the singer. The singer claims in her lawsuit the accountants performed bad bookkeeping, failed to recommend that she lower her expenses while on a tour in 2009 that lost money and created an audit by the IRS.
The suit was filed by Rihanna in Manhattan court under Robyn Fenty, her real name. She has alleged that her former accounts took revenues worth millions from four international and national tours in the last five years. The lawsuit alleges Rihanna discovered that a tour in 2009 had large net losses, even though overall revenue had increased. The suit continues by alleging that the accountants took 22% of the revenue, while Rihanna received only 6%.
The suit claims the practices by Berdon of paying a percentage of the tour income to itself as a commission was not common for the business or accounting industry and gave them no incentive to try counsel the singer when the time came to lower costs or to control her finances.
The suit claims that as evidence of the poor bookkeeping by Berdon, it pointed to the huge success of the singer’s Loud tour from 2011, which saw a profit of over 40% of tour revenues. The accountants were reportedly hired in 2005 by Rihanna, when the star from Barbados was only 16 and just starting her career. The accountants were fired in 2010. She accuses them in her lawsuit of being the ones responsible for the IRS audit, which caused her to have to pay for errors that Berdon committed due to negligence.