American actress and singer Selena Gomez, her mother Mandy Teefey and former business partner Daniella Pierson face a lawsuit from investors who allege fraud and breach of contract involving their mental health startup, Wondermind Global.
The complaint, filed in federal court in Delaware, alleges that Gomez, Teefey and Pierson falsely represented that Wondermind had the infrastructure, leadership and resources needed to become a profitable mental health and wellness platform.
The investors said those representations prompted them to invest nearly $1.2 million in the company.
They also alleged that Gomez failed to fulfill commitments after investors were told she would be closely involved in Wondermind’s marketing and publicity efforts.
According to the complaint, several initiatives promised to investors, including a mobile application, never materialized.
The investors further alleged that the company’s founders, officers and directors failed to inform them as the business struggled.
Gomez, Teefey and Pierson face multiple counts of fraud and breach of contract, according to USA TODAY, which reported on court documents.
Pierson has denied the allegations, saying she invested her own money in Wondermind and did not receive a salary from the company.
Gomez and Teefey had not publicly commented on the lawsuit as of publication.
