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Business News Legal
Rihanna files new lawsuit against former accountant
By Andy Malt | Published on Friday 14 February 2014
Rihanna’s longrunning legal battle with her former accountancy firm Berdon LLP in New York has taken another turn, with the singer launching a new lawsuit against the company.
As previously reported, Rihanna sued Berdon back in 2012, claiming that between 2005 and 2010 former employees of the company, Michael Mitnick and Peter Gounis, mismanaged the finances of her touring business, Tourihanna. The accountancy firm later responded saying that any losses during this period were solely due to Rihanna’s “own financial action or inaction”.
Now, according to TMZ, Rihanna has filed a new lawsuit against Berdon that claims bad advice from her accountants in 2009 left her “effectively bankrupt”. In that she started the year with $11 million, but ended it with just $2 million, mainly because she bought a $7 million house, a purchase her beancounters apparently approved, and which subsequently left the singer $2 million out of pocket when she sold the property for less than she paid for it.
This, the lawsuit says, amounts to gross mismanagement of her finances, because rather than telling her to go and buy the house, the accountancy people should have been pointing out to Rihanna that her tour at the time was losing money
Forbes now estimates that the popstress is worth $43 million, so it’s all alright really.
