Selena Gomez Sued Over Alleged Fraud

American pop star and actress Selena Gomez and her health-focused startup, Wondermind, have been sued by several investors over allegations of fraud and deception. The lawsuit was filed on Thursday (August 13), with the investors claiming they were misled about the company’s success and Gomez’s involvement.

According to CNN, Wondermind was launched in 2021, with Gomez listed as a co-founder, chief impact officer and chief marketing officer. The company aimed to provide people with simple and effective ways to prioritize their mental well-being.

Five investors claim they invested around $1.2 million, relying on Gomez’s celebrity status and large social media following to help build the company. However, they allege that the startup was quietly facing serious financial problems for years without informing them.

The lawsuit also names Gomez’s mother and Wondermind co-CEO Mandy Teefey, along with former business partner Daniel Pearce. The investors are seeking repayment of their investments, damages and legal costs.

Court documents show that in 2022, the company claimed to have $95 million in capital and promoted plans for corporate partnerships, advertising deals and a major new app. The investors allege that these projects were never realized.

The lawsuit further claims that Gomez, Teefey and Pearce collectively controlled nearly 90 percent of the company. Pearce left Wondermind in 2023 and has also been accused of using investor funds for personal expenses.