Rihanna Sues Former Accountants For Millions In Loss Of Earnings
6 July 2012, 07:32 | Updated: 6 July 2012, 07:37
The 'We Found Love' star is said to have missed out on income from her tours through mismanagement of her accounts.
Rihanna has reportedly filled a lawsuit against her former accountants for mismanaging her finances resulting in the star losing out in millions of dollars.
The 'You Da One' singer and her tour company Tourihanna are seeking compensation for loss of earnings from the firm Berdon LLP and her former employees Michael Mitnick and Peter Gounis, reports Reuters.
"Between 2005 and 2010, Tourihanna suffered significant losses due to defendants' financial mismanagement and other acts and omissions," read the lawsuit which was filled in Manhattan this week.
The firm are said to have charged "exorbitant" commissions from the star's 2010 'Last Girl On Earth' tour as well as failing to monitor unpaid song royalties.
It is also reported that Rihanna has been described in the suit as a "financial novice" who relied heavily on her accountants.
She was introduced to Berdon as "a minor with a booming music career and no knowledge or understanding of financial matters whatsoever."
Her long term wealth and personal net worth have also been compromised by the company, the lawsuit added.
You can view a picture of Rihanna perfomring on her 'Loud' UK tour below:
Between 2007 and 2010 the accountants are said to have earned 23 per cent commission on receipts for millions taken from the total tour income.
Also, it's reported that the IRS are now auditing the star because of how Berdon mishandles her tax returns between 2008 and 2010.
Meanwhile, Rihanna has flown back home this week to be with her family after the loss of her grandmother Dolly this past weekend.
The star has been in the UK filming a new fashion reality show for Sky Living and also recorded new music in the capital which she described as "magic" recently.