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Rihanna Files New York Breach of Contract Lawsuit Against Berdon LLP

Posted on Jan 01, 2016

Popular singer Rihanna filed a lawsuit in Manhattan Federal Court alleging breach of contract and negligence against her former accountants. The singer alleges that the accountants lost her millions of dollars and lead to an audit by the Internal Revenue Service. The lawsuit was filed under the singer’s legal name, Robyn Fenty.

In her suit, Rihanna alleges the following facts:

  • She hired Berdon LLP of New York to be her financial manager in 2005.
  • Rihanna was 16 years old at the time she entered into the contract.
  • Berdon LLP failed to properly manage her cash flow, expenses, and touring income during her 2009 “Last Girl on Earth Tour.” These failures directly resulted in her loss of millions of dollars.
  • Berdon LLP mismanaged her taxes, including a failure to file tax returns in multiple instances. The mismanagement of her taxes led to an audit for the tax years 2008 to 2010.
  • Berdon LLP failed to discover that the singer was owed millions of dollars in unpaid royalties.
  • Berdon LLP negligently failed to advise her against purchasing a home in Beverly Hills.
  • Berdon LLP was paid “exorbitant” commissions and expenses during that time period.
  • Rihanna was left with just a fraction of the amount that she should have earned during Berdon’s time serving as her financial manager.
  • Rihanna terminated her relationship with Berdon LLP in September of 2011 after uncovering the extent of the financial mismanagement.

To learn more about these and other breach of contract matters, contact a New York business litigation attorney today at (888) 497-3410.

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