Rihanna sues ex-accountants

In a lawsuit filed in Manhattan federal court that surfaced last week, the 24-year-old singer and her tour company, Tourihanna, is seeking an unspecified amount of compensatory damages and loss of earnings from accountancy firm Berdon LLP and former employees Michael Mitnick and Peter Gounis.
The suit claims the accounting firm caused “significant financial losses” between 2005 and 2010 by charging “exorbitant” commissions from Rihanna’s 2010 “The Last

Girl on Earth” tour.

It also accuses Berdon of mishandling Rihanna’s foreign and domestic taxes and failing to monitor unpaid song royalties.
“Between 2005 and 2010, Tourihanna suffered significant losses due to defendants’ financial mismanagement and other acts and omissions,” the lawsuit said. Ron Storch, a partner at Berdon, said the company could not comment on pending litigation. Mitnick and Gounis have since left the firm and could not be reached for comment.

Rihanna, whose real name is Robyn Fenty, has produced a string of worldwide hits including “Umbrella” and “We Found Love”. She is referred to in the suit as a financial novice who found fame at a young age and relied heavily on her accountants. Her music management introduced her to Berdon in 2005 when she was a 16-year-old and “a minor with a booming music career and no knowledge or understanding of financial matters whatsoever”.

The lawsuit said the accountants concealed facts regarding her finances and, in a deal Rihanna’s lawyers called unusual, earned commissions based on a percentage of Rihanna’s gross receipts that were “exorbitant and expensive”.
In addition, the firm assumed control over the singer’s affairs beyond the industry standard and failed to maximise her personal net worth and long term wealth, the lawsuit said.

The lawsuit said several of the Barbados-born singer’s national and international tours between 2005 and 2010 suffered losses compared with her last tour, “Loud”, that was a financial success after she parted ways with Berdon.
The lawsuit said Rihanna lost millions of dollars during “The Last Girl On Earth” tour after the firm failed to reconcile costs versus revenues. — Reuters.