Rihanna sues former accountants alleging profit siphoning
UPI News Service, 07/07/2012
Rihanna has sued her former accountants, charging New York-based Berdon LLP used dubious practices to siphon profits from her concert tours.
In the lawsuit filed in U.S. District Court in Manhattan, Rihanna, known in civilian life as Robyn Rihanna Fenty, blames Berdon for tax troubles, The Philadelphia Inquirer reported. She said Berdon's mistakes on her income tax returns have led to a continuous audit by the U.S. Internal Revenue Service.
Rihanna said Berdon paid itself a percentage of the gross revenue from each tour. She said that while her "Last Girl on Earth" tour in 2009 had a net loss, Berdon got 22 percent of the revenues and paid her only 6 percent.
After she fired Berdon, her "Loud" tour last year returned 40 percent of the gross revenues as profit, Rihanna said.
A Berdon spokeswoman declined to comment on the suit.
Rihanna, 24, moved to the United States from Barbados when she was 16.
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