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Rihanna settles $10m accountant legal battle

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20th Feb 2014
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World-famous singer Rihanna has settled a lawsuit worth $10m (£6m) against her former accountants Berdon LLP, after she claimed she was left "effectively bankrupt" by their mismanagement of her finances.

The 25-year-old Barbadian singer initially began proceedings to sue her former accountant Peter Gounis for mismanagement of her funds, the Daily News said.

She said that the Gounis and the firm caused her to squander $9m in 2009, starting the year off with $11m and ending in $2m.

The alleged mismanagement included advising the purchase of a Beverley Hills mansion for over $7m even though she was running out of money, which turned out to be mouldy and in need of multiple repairs.

According to Page Six

“The defendants advised Ms Fenty by e-mail that purchasing a home in Los Angeles ‘would be a good investment’ despite knowing Ms Fenty was experiencing financial difficulties,” wrote Rihanna’s lawyer Edward Estrada. 

The star's expenses also doubled during this period, and she claimed the accountants were also at fault for not warning her that her 2009 tour would not turn a profit. 

Rihanna, real name Robyn Fenty, fired her accountants and subsequently filed a lawsuit at Manhattan Federal Court in 2012, suing them for $35m. The firm's lawyer had defended its actions, saying it did nothing wrong - but this week, the firm decided to settle with the singer for $10m outside of court, Page Six reported.

The Disturbia singer appears to have bounced back from her 2009 difficulties and is now worth $43m. Her work has earned her numerous awards and accolades, including seven Grammy Awards, eight American Music Awards, 22 Billboard Music Awards and two BRIT Awards.

According to Wikipedia, she has sold over 30 million albums and 120 million singles worldwide, making her one of the best-selling artists of all time.

However, it's not all quiet on the legal front for poor Rihanna - as she is now being sued by a photographer who claims she plagarised his work for a 2010 music video, according to fashion magazine Vogue.

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