Investors sue Selena Gomezs mental health start-up Wondermind over false promises.

Investors in Selena Gomez's mental health start-up Wondermind have filed a federal lawsuit against the celebrity and her team, alleging they misrepresented the company's success and hid its collapse for three years.

False Promises

The lawsuit claims that Gomez, along with her mother Mandy Teefey and friend Daniella Pierson, made false promises to investors about the company's leadership, partnerships, and marketing strategy.

According to the complaint, the trio allegedly told investors that Wondermind would feature a mobile app as its centerpiece and benefit from major advertising deals and celebrity endorsements.

However, the lawsuit states that there was no plan to make the company profitable, and the founders failed to deliver on their commitments, resulting in a collapse of the business.

The investors claim that Gomez was touted as a key marketing figure for the brand, while Pierson was pitched to investors as a high-level executive with revenue-generating initiatives already underway.

“The partnerships did not exist. The initiatives never materialized. The app was never built,” the complaint states.

The lawsuit seeks damages and the rescission of the investment contract.

In response, Pierson's representative stated that she had invested her own money into the business and had not used investor funds for personal expenses.

“To be clear, she has never used investor funds for personal expenses. Quite the opposite: Daniella invested her own money into the business and did not draw a salary from the company,” her rep said in a statement.