Rihanna has filed a lawsuit against her former accountants for mismanaging her finances. The pop star claims that she lost millions due to her accountant’s “exorbitant” commissions.
The 24-year-old singer and her touring company, Tourihanna, have filed a lawsuit against Berdon LLP and its employees Michael Mitnick and Peter Gounis for an unspecified amount of money.
The lawsuit reads: “Between 2005 and 2010, Tourihanna suffered significant losses due to defendants’ financial mismanagement and other acts and omissions.”
Rihanna claims that the accounting firm caused her “significant losses” by charging “exorbitant” commissions during her tours. The singer also claims that the company mishandled her taxes and failed to properly monitor her song royalties.
According to Reuters, Rihanna started working with Berdon LLP when she was 16-years-old in 2005. The lawsuit claims that the accounting firm took advantage of the “financial novice” at the start of her career.
The Associated Press reports that during Rihanna’s “Last Girl On Earth Tour,” Berdon LLP bases its commission on tour revenues, which is unusual accounting practice. The accounting firm ended up pocketing 22 percent of the tour’s total revenue, compared to the 6% that Rihanna received.
The lawsuit also points out that Rihanna’s tours have been doing much better since she got rid of Berdon LLP in 2010. The singer’s “Loud” tour produced a net profit of more than 40% of total tour revenues.
The singer is also blaming the accounting firm for the $7 million home she purchased in 2009. Rihanna claims that a competent accounting firm would have alerted her that her tour wasn’t making money and advised her against buying an expensive home.