Rihanna, the popular Barbadian recording artist, actress and fashion designer, won a multi-million dollar lawsuit she filed against her former accountant Peter Gounis of Berdon LLP, alleging that his bad advice nearly brought her to the brink of bankruptcy at the end of 2009.
Quoting the New York Post, a report in the Daily Mail says that in 2010, the 25-year-old pop star filed the case under her actual name, Robyn Fenty, claiming that she had lost $9 million in one year because of her former accountant. The actor is said to have reached a $10 million out-of-court settlement with the law firm after she sued for $35 million.
In her lawsuit, Rihanna claimed that while she possessed $11 million in January 2009, her savings declined to only $2 million at the end of the year after purchasing a leaking and moldy mansion at Beverly Hills for $7.5 million on the advice of her accountant.
She claimed that, despite her fiscal condition, her accountant told her that she would be able to afford another Los Angeles home worth $7 million, with Gounis, who Rihanna sacked in 2010, saying in an e-mail that it would be a "good investment" for her.
Rihanna's lawyer, Edward Estrada, told the court that she had to spend more than $1 million to repair the Beverly Hills home, which the pop star eventually sold for a loss of $2 million. Edwards claimed that although Gounis was aware of Rihanna's poor financial status at that time, he failed to advise her against buying the property.
Her financial consultant even failed to caution her about her escalating expenses, which was also partly responsible for the singer's financial problems, Edwards said.
Gounis, however, defended his actions, saying that the pop star had frittered away large amounts of money on designer clothes and jewelry. Eventually, both sides arrived at an out-of-court settlement, with the law firm agreeing to pay Rihanna $10 million. The papers are being prepared and are likely to be signed later this week.
Currently worth $43 million, Rihanna started her singing career in 2003 and produced her first album "Music of the Sun" in 2005. The pop star won many accolades and numerous awards, including seven Grammy Awards, eight American Music Awards, 22 Billboard Music Awards, and two BRIT Awards for her third album "Good Girl Gone Bad" in 2007. She was presented with the first American Music "Icon" Award on Nov. 24, 2013.
