Welcome to SAMAA TV
 
SAMAA SMS News Alerts
 
Chinese PM returns after Pakistan visit         ICC drops Pakistan umpire Asad Rauf from panel of Champions Trophy         A Minute With: Pitbull on music, Jennifer Lopez and 'Epic'         Residents of Lyari protest against targeted killings         Barred from poll, Rafsanjani calls Iranian leaders ignorant         Karachi is going through process of change: Qureshi         PML-N formally nominates Shahbaz for Punjab CM         Global shares sink on US stimulus pullback, Chinese growth fears         Severe heat wave likely to continue till Friday         Vitamin C may not treat gout: study         Karachi violence claims 4 lives, Rangers arrest 6 suspects         China's Li effusive in praise of Pakistan         Patched up Harris ready for all five Ashes tests         Five killed, 50 wounded in Lebanon's Tripoli         Malaysia police arrest opposition figures in crackdown         Treason case hearing against Musharraf adjourned till June 3         MQM dissolves Rabita Committee in Karachi, London         Man linked to Boston bombing suspect killed by FBI in Florida         Chinese PM addresses special Senate session         Short story writer Lydia Davis wins Man Booker International fiction prize         Switching from scandals, Obama to address drones and Guantanamo         MQM expels local party leader, suspends three others         Iran pushes ahead with nuclear plant that worries West         Japanese octogenarian becomes oldest to reach Everest summit         Crackdown on radical Islamists tests Tunisia's stability         Chinese PM, Nawaz Sharif discuss bilateral ties         Premier Li, top military brass discuss security situation         Chinese PM to address Pakistan Senate today         Samsung says Galaxy S4 sales hit 10 million         West may boost Syria rebels if Assad won't talk peace         JGB yields surge, markets spooked by Bernanke remarks         US admits killing four Americans in drone strikes         Explosion hits FC check post near Quetta; 12 killed         Merkel protege struggles with Germany's green revolution         49 independents join PML-N: Election Commissioner Punjab         Terrorist arrested from Manghopir, bomb seized         PCB bans players including Afridi to play foreign cricket         Soldier hacked to death in London; 2 suspects arrested         Chemical that sparked deadly Texas explosion found across U.S         Twitter beefs up security after hacking spree on media        
Rihanna sues ex-accountants, says she lost millions
Friday, July 06, 2012 6:49:08 PM | Comments (0)
Rihanna sues ex-accountants, says she lost millions

NEW YORK: Pop star Rihanna has sued her former accountants for mismanaging the singer's finances, including claiming they earned huge commissions from concert tours that resulted in her losing millions of dollars.

In a lawsuit filed in Manhattan federal court that surfaced on Thursday, the 24-year-old singer and her tour company, Tourihanna, is seeking an unspecified amount of compensatory damages and loss of earnings from accountancy firm Berdon LLP and former employees Michael Mitnick and Peter Gounis.

The suit, first filed late in Tuesday ahead of the July 4 U.S. holiday, claims the accounting firm caused "significant financial losses" between 2005 and 2010 by charging "exorbitant" commissions from Rihanna's 2010 "Last Girl on Earth Tour." It also accuses Berdon of mishandling Rihanna's foreign and domestic taxes and failing to monitor unpaid song royalties.

"Between 2005 and 2010, Tourihanna suffered significant losses due to defendants' financial mismanagement and other acts and omissions," the lawsuit said.

Ron Storch, a partner at Berdon, said the company could not comment on pending litigation. Mitnick and Gounis have since left the firm and could not be reached for comment.

Rihanna, whose real name is Robyn Fenty, has produced a string of worldwide hits including "Umbrella" and "We Found Love." She is referred to in the suit as a financial novice who found fame at a young age and relied heavily on her accountants.

Her music management introduced her to Berdon in 2005 when she was a 16-year-old and "a minor with a booming music career and no knowledge or understanding of financial matters whatsoever."

The lawsuit said the accountants concealed facts regarding her finances and, in a deal Rihanna's lawyers called unusual, earned commissions based on a percentage of Rihanna's gross receipts that were "exorbitant and expensive."

In addition, the firm assumed control over the singer's affairs beyond the industry standard and failed to maximize her personal net worth and long term wealth, the lawsuit said.

The lawsuit said several of the Barbados-born singer's national and international tours between 2005 and 2010 suffered losses compared with her last tour, "Loud", that was a financial success after she parted ways with Berdon.

The lawsuit said Rihanna lost millions of dollars during "The Last Girl On Earth" tour after the firm failed to reconcile costs versus revenues while still paying itself millions in fees.

It estimated that between 2007 and 2010, the accountants earned millions in commissions on tour gross receipts in an amount equaling 23 percent of total tour income, compared with 6 percent for Rihanna.

The firm did not do monthly planning reports and performed little record-keeping of Rihanna's personal and business expenses, including those for Tourihanna. For example, during 2008 and 2009, the accountants kept only 2 percent to 4 percent of all receipts for expenses charged on the singer's personal credit card, the suit said.

It also failed to uncover millions in unpaid royalties and problems with the way in which Universal Music Group (UMG) label Recordings was tracking song royalties. The suit did not mention Rihanna's direct label, Def Jam, also owned by UMG.

Accountants mishandled foreign and domestic taxes by withholding more funds than necessary, leading to "a significant losses of tax benefits" and failed to file taxes on time, causing late penalties.

The singer further claims that, as a result, the IRS is now auditing her because Berdon mishandled tax returns between 2008 and 2010. The suit includes claims of breach of contract, negligence, breach of fiduciary duty and unjust enrichment. AGENCIES

 
 
Watch SAMAA TV Live
Brown-Rihanna saga gives young fans a lesson in abuse
Rihanna’s new tattoo is fully loaded
Brown sentenced for Rihanna beating
Rihanna finds her way to top of charts
Rihanna taken to hospital in Sweden with flu
Rihanna teases new album, climbs iTunes chart
Singer Rihanna calls Chris Brown music reunion ‘innocent’
Chinese PM returns after Pakistan visit
A Minute With: Pitbull on music, Jennifer Lopez and 'Epic'
Residents of Lyari protest against targeted killings
Turkey presents Prophet's sayings for the 21st Century
Barred from poll, Rafsanjani calls Iranian leaders ignorant
 
 
 
Post Your Comments
Note: SAMAA TV values your opinions and encourages you to add a comment to this discussion. Please don't be offended if we edit and/or remove questionable, off topic comments; SAMAA TV is not responsible for user comments.
Name:
 
Email:
 
 Leave a Comment:
 
Security Code:
 
 
User Comments
No comment(s) found.
 
     
SAMAA TV
UPDATES WITH
follow us on facebook
follow us on twitter
follow us on youtube
isamaa
subscribe for samaa email news alerts
samaa sms alert
samaa rss