Rihanna Pulls No Punches in Lawsuit

 

By Ken Berry
 
Pop singer Rihanna has been in the news lately for her role in an altercation involving her former lover, Chris Brown, who reportedly physically abused her when the two were dating. (Their on-again, off-again relationship may be on again.) Now the megastar is fighting another foe ‒ the accountants whom she blames for mishandling her finances and federal income tax returns.
 
According to a lawsuit filed in federal court in Manhattan last week by Rihanna (real name Robyn Fenty), the twenty-four-year-old singer and her touring company, Tourihanna, are seeking tens of millions of dollars in compensatory damages and loss of earnings from the accounting firm of Berdon LLP as well as two of the firm's former employees, Michael Mitnick and Peter Gounis. The lawsuit claims that Berdon caused "significant financial losses" between 2005 and 2010 by charging "exorbitant" commissions.
 
Rihanna goes on to say that Berdon LLP failed to recommend ways for her to cut expenses during her "Last Girl on Earth" tour in 2009. Because the accounting firm was paid commissions equal to 22 percent of the tour income, she said it had no incentive to do. Rihanna claims that she received only 6 percent of the tour income.
 
The lawsuit also alleges that Berdon LLP was negligent in filing federal tax returns for Rihanna, causing her to spend substantial amounts to fix the mess. At this time, the IRS is still auditing the singer.
 
Rihanna was born in Barbados, but moved to the United States at age sixteen to pursue a recording career. She has won four Grammy Awards, five American Music Awards, and also appeared in the movie Battleship in 2012.
 
Related articles:

You may like these other stories...

Tesco accounting probe finds “inappropriate behavior” by staff – reportsClare Hutchison of Reuters wrote on Sunday that an investigation into a 250 million-pound ($402 million) profit overstatement at...
Did you ever feel as if you're preparing taxes in the Twilight Zone? You may be more right than you think. Each year, professional preparers all over the country have to work in a shadowy reflection of the normal tax...
The split over convergenceDavid M. Katz of CFO wrote an interesting article on Thursday about the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) backing away from their...

Already a member? log in here.

Upcoming CPE Webinars

Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 22This webinar will include discussions of important issues in AU-C 800, Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.
Oct 30Many Excel users have a love-hate relationship with workbook links.