The 24-year-old singing sensation Rihanna has lost a considerable amount of her royalty. She has sued her former accountants for mismanaging her finances and claims that they earned huge commissions from concert tours, which inturn resulted in her loosing millions of dollars.
In a lawsuit, the pop singer and her tour company Tourihanna are seeking an unspecified amount of compensatory damages and loss of earnings from accountancy firm Berdon LLP and former employees, Peter Gounis and Michael Mitnick. The lawsuit was filed in Manahattan. "Between 2005 and 2010, Tourihanna suffered significant losses due to defendants' financial mismanagement and other acts and omissions," the lawsuit said. The lawsuit talks about exorbitant comissions being charged from Rihanna's 2010 "Last Girl on Earth Tour."
It also accuses Berdon of exploitation of Rihanna's foreign and domestic taxes and failure to monitor unpaid song royalties. However, Gounis and Mitnick were not available for comment. The suit alleges of breach of contract, negligence, breach of fiduciary duty and unjust enrichment. Rihanna further claimed that as a result of Berdon's mishandling of tax returns between 2008 to 2010 has led to IRS auditing her.