Rihanna Bankruptcy in 2009 Caused by Accountant's Mismanagement? Singer Files Lawsuit
Rihanna's bankruptcy in 2009 was caused by her former accountant, according to court documents. The "Rude Boy" singer claims that about five years ago, accounting firm Berndon LLP mismanaged her funds to where she had only $2 million in cash and far more liabilities than assets.
Rihanna's bankruptcy wasn't formalized, but the pop star said her cash was reduced from $11 million at the beginning of 2009 down to $2 million. She is now filing a lawsuit against her former accountant, who worked for Berdon LLP.
The "Umbrella" singer, whose real name is Robyn Rihanna Fenty, lost money through a variety of factors. The first of these was a $7.5 million mansion she bought that year on the advice of her accountants— she ended up selling the property for a $2 million loss, according to TMZ.
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Next, Rihanna said in the court documents that her "Last Girl on Earth" tour in 2009 was losing money, but she was never informed of this fact.
Finally the accounting firm Berdon LLP was taking a huge slice of the pie— 22 percent is far above standard commission for their work— which only added to her financial woes that year.
However, Berdon LLP has fired back at the "Diamonds" singer, claiming that she signed letters detailing everything financial that occurred that year. Her "own financial action or inaction" or the actions of others is what ended up with her effectively bankrupt, they claimed in legal documents.
They are asking the judge that Rihanna be awarded nothing for damages.
Since 2009, though, the singer has since recovered financially. She made $43 million in 2013 alone, according to Forbes, and the pop star is worth about $85 million, TheRichest estimates.
