Rihanna and her touring company Tourihanna filed a major lawsuit against New York accounting firm Berden LLP (and two of its employees, Michael Mitnick and Peter Gounis) for mismanaging her income from her Last Girl On Earth Tour, giving her bad advice and submitting shoddy paperwork to the IRS which now results in her being audited.
In court docs filed under her real name Robyn Rihanna Fenty, the 24 year-old blames the company for not advising her to trim her tour expenses. I guess them receiving a 22% of her gross tour income explained some of that. A damn shame since she only received 6%.
The Bajan songstress who hired the firm in 2005 when she was just 16, also accuses them of giving her bad advice, like giving the o.k for her to purchase that $6.9 LA pad that she ended up having to sell due to leaks and other structural problems.
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“Despite having earned millions of dollars in revenues during Berdon’s tenure Fenty learned that her net income after payment of expenses and exorbitant commissiones to defendant was a fraction of that amount,” the suit states.
The “Birthday Cake” singer accused the company of becoming lazy with her tax paperwork from 2008-2010. Despite her making the necessary corrections, she is still being audited by the IRS.
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Since firing the firm and its accountants in September 2010, Rihanna’s fortunes already have reversed, the lawsuit said. The “Loud” tour stretching from June 2011 to December 2011 produced a net profit equal to more than 40 percent of total tour revenues.
Berdon has reportedly not responded to media requests for comment.
via [WSJ]
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