Rihanna sues accountants for alleged lost millions
Rihanna says her former accountants allegedly cost her tens of millions of dollars in revenue, let her buy a lemon of a home and got her audited by the IRS, so you can kind of understand why she's suing them for alleged breach of contract and negligence. Next time, just try one of those H&R Block kiosks at the mall.
In a lawsuit filed Thursday in Manhattan under the singer's real name of Robin Fenty, Berdon LLP is accused of poor practices since the singer hired them in 2005. She says they didn't file quality tax returns between 2008 and 2010, triggering an ongoing audit. She also says the gave her bad advice to buy a $6.9 beverly Hills home that had cracked walls and a leaky roof.
The real money-loser, however, was the firm's failure to advise her of how much money she was losing on her 2009 Last Girl on Earth tour. Rihanna claims Berdon LLP didn't tell her to cut back on the show, which had "significant net losses," because they were getting 22 percent of her tour revenue, while she was only getting 6 percent. Sounds like someone didn't read the fine print.
"Despite having earned millions of dollars in revenues during Berdon's tenure Fenty learned that her net income after payment of expenses and exorbitant commissions to defendant was a fraction of that amount," the lawsuit says. As proof it was the firm, Rihanna points out her cash flow has gone up since she fired Berdon last September, and her 2011 Loud tour made a 40 percent profit. Has she ever considered that maybe it just had better songs in it?
[Photo: Getty Images]