Umbrella singer files a US lawsuit against accountancy firm Berdon and its ex-employees Michael Mitnick and Peter Gounis
SINGING SENSATION Rihanna has filed a lawsuit against her former accountants following an Internal Revenue Service audit.
In a lawsuit filed in a Manhattan federal court yesterday, the 24-year-old singer and her tour company Tourihanna are seeking damages and loss of earnings from former accountancy firm Berdon, including ex-employees Michael Mitnick and Peter Gounis, during their working relationship from 2005 to 2010.
Reuters reports that the lawsuit said: “Between 2005 and 2010, Tourihanna suffered significant losses due to defendants’ financial mismanagement and other acts and omissions.”
The suit also claims that an “unusual” deal was struck which saw the accountants earn commission on the singer’s gross receipts that were “exorbitant and expensive”. The firm earned about 23% from Rihanna’s tours compared to the 6% earned by the singer herself.
Rihanna’s legal team claim that the firm failed to uncover millions in unpaid royalties, failed to keep proper records of expenses, mishandled foreign and domestic taxes and failed to file taxes on time. The singer also claims that because of Berdon’s mishandling of tax returns between 2008 and 2010, the IRS is auditing her finances.