Singer pop star Rihanna sued her former accountants Thursday for greatly mismanaging her finances. The lawsuit states that Rihanna’s former accountants were careless with bookkeeping, failed to recommend that she cut down on expenses when a 2009 tour was losing money and for an ongoing audit by the Internal Revenue Service.
Over a five-year period, Rihanna alleged the accountants were draining tens of millions of dollars from revenues while she launched four national and international tours.
According to the lawsuit, the Last Girl on Earth tour had “significant net losses.” Rihanna’s former accountants reeled in twenty-two percent of the tour’s total revenue in 2009 while Rihanna herself only received six percent.
Aside from the revenues lost from the tour, Rihanna is also suing the accountants for an ongoing IRS audit of her tax returns. Rihanna claims that she needed to spend significant resources to correct errors that resulted from the accountants’ negligence.
Rihanna hired her former accounting firm as a 16-year-old first starting her career in 2005. The former accountants repeatedly broke their agreements, paid themselves extreme commissions and mismanaged her finances.
Further, the lawsuit blames the company for the 2009 purchase of Rihanna’s new home. The lawsuit says that the accountants should have advised Rihanna not to buy the home at that time as her 2009 tour was losing money.
Since Rihanna fired the accounting firm in September 2010, the singer’s fortunes have already increased.
