Friday 6 July 2012

Rihanna Sues Ex-Accountants For Million Dollar Losses




NEW YORK (AP) — Rihanna sued her former accountants Thursday, blaming them for tens of millions of dollars in losses, shoddy bookkeeping, a failure to recommend she trim expenses when a 2009 tour was losing money and an ongoing audit by the Internal Revenue Service.
The lawsuit in federal court in Manhattan sought unspecified damages against New York-based Berdon LLP and two accountants. A Berdon spokeswoman said the company had no immediate comment.
The singer, suing under her real name, Robyn Fenty, alleged through her attorneys that the defendants drained tens of millions of dollars from revenues while she launched four national and international tours over a five-year period.
Rihanna's lawyers also blamed the accounting firm for an ongoing IRS audit of her tax returns, saying she was forced to spend significant resources to correct errors resulting from negligence.
According to the lawsuit, the singer hired the accountants in 2005 when she was a 16-year-old from Barbados launching her career. She alleged that they repeatedly breached their agreements, engaged in misconduct and malfeasance, paid themselves excessive commissions, created entities without regard to their effect on her taxes and failed to document revenue and expenses and implement a proper budget.
The lawsuit also blamed the company for Rihanna's 2009 purchase of a new home, saying competent business managers would have told her that her tour was losing money and that it would not be advisable to buy such an expensive home at that time.
Last year, Rihanna sued a real estate company in Los Angeles over the $6.9 million purchase of a hillside home in 2009, saying it had serious structural defects that made it uninhabitable.

2 comments:

Master said...

It's really been a good article,
Nice work!!


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Anonymous said...

Poor Robyn... she should have gotten rid of the bad accountantswhen she realized they weren't good. Instead she just stuck with them. DUHH!