Rihanna wins £6m settlement against accountants
18 Feb 2014
Singer Rihanna has won a multi-million dollar lawsuit against her former accountant after claiming bad advice from Peter Gounis of Berdon LLP resulted in the star becoming ‘effectively bankrupt’ in 2009
18 Feb 2014
The celebrity, whose real name is Robyn Fenty, was suing Gounis for $35m (£21m) and the firm has now settled with the Barbadian pop star out of court for around $10m (£6m) according to the New York Post.
According to information provided in court, Gounis and his firm advised Rihanna she had the money to buy a $7m (£4.1m) Southern California house in 2009, describing it as a ‘good investment’ even though the singer was having financial difficulties at the time and her expenses had more than doubled.
It was claimed that Rihanna lost $9m (£5.4m) over the year, leaving her with just $2m (£1.2m) at the end of 2009. The house purchase cost the star more than $1m (£600,000) in improvements to tackle water and mould damage, and Rihanna eventually sold the property for nearly $2m (£1.2m) less than she paid.
The court papers said: 'Mr Gounis was fully apprised of Ms Fenty’s financial condition, yet, nonetheless, failed to advise her that the purchase would be unwise.'
In response, Gounis has said that the singer squandered huge amounts of money on designer clothes and jewellery.
Rihanna’s financial position has improved following a number of successful tours and albums, and in 2012 Forbes ranked her the fourth most powerful celebrity of the year, with earnings of $53m (£31.7m) between May 2011 and May 2012.