Selena Gomez is facing a lawsuit alleging fraud in connection with her mental health startup, Wondermind.
Court documents filed in Delaware on Thursday accuse the singer and actress, her mother Mandy Teefey, and former business partner Daniella Pierson of fraud and breach of contract. The plaintiffs, Wondermind SRS 44 and Bespoke Wondermind SPV, say they invested nearly $1.2m (£900,000) in the company in 2022.
According to the complaint, the investors allege they were misled into believing Wondermind had the infrastructure, leadership and financial resources required to build a profitable mental health and wellness platform. They claim those representations were false.
Ms Pierson has denied the allegations. In a statement to USA Today, she said she had never used investor funds for personal expenses, had invested her own money in the business, and had not taken a salary from the company. Neither Gomez nor Teefey had publicly responded to the lawsuit at the time of writing.
