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Rihanna was ‘effectively bankrupt’ after spending £7m in one year

The singer filed new legal documents in relation to her ongoing gross mismanagement case against the accountancy firm Berdon LLP

Jenn Selby
Wednesday 12 February 2014 11:54 EST
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Rihanna was left ‘effectively bankrupt’ after spending nearly £7million in just under a year, it has been reported.

According to legal documents obtained by celebrity website TMZ, apparently filed this week in relation to her gross mismanagement case against the accountancy firm Berdon LLP in 2012, the 25-year-old singer claims that by the end of 2009, she was down to her last million because of her former accountant’s poor decisions over her fortune.

Rihanna also alleges that her expenses ‘doubled’ and left her on the brink of financial ruin.

Instances of alleged mismanagement listed by the singer include being given the go-ahead to purchase a house priced between £4million and £4.5million. She later sold the residence at a loss of £2million.

She also claims in the lawsuit that her Last Girl on Earth tour was losing money, but that her accountant hadn’t warned her to watch her spending.

However, Berdon countered Rihanna’s suit by claiming it was her own ‘financial action or inaction’ – and that of the people around her – that cause her to lose money, not the financial company’s decisions.

Berdon went on to dismiss her claim that she paid an ‘above-average’ commission to the company of 22 per cent, saying that the singer had signed it off herself.

Of course, £7million is but pocket change for Rihanna in 2014, who is now worth an estimated £26million ($43million).

The legal dispute continues.

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