Selena Gomezs mental health startup accused of defrauding investors with false promises.

A federal lawsuit has been filed against Selena Gomez and her mother Mandy Teefey's mental health startup Wondermind, alleging that the company defrauded investors by misrepresenting its business prospects and leadership.

Background

Wondermind was launched in 2021 as a mental fitness company aiming to reduce stigma surrounding mental health through digitaland wellness resources.

The startup was co-founded by Selena Gomez, her mother Mandy Teefey, and entrepreneur Daniella Pierson.

Lawsuit Allegations

• Defrauding investors: The complaint alleged that Wondermind misrepresented its business prospects, leadership, celebrity partnerships, and product development.
• Misleading investors about app launch: Investors were told the company would launch a dedicated Wondermind app, but it was never completed.
• Overly optimistic financial health and operations: Investors received limited updates and were assured that the company was progressing as planned.
• Gomez's engagement as a celebrity: Investors believed that Gomez's engagement with her fan base made the company valuable.

Lawsuit Details

The lawsuit seeks to rescind nearly $1.2 million in investments and recover damages.

According to the complaint, none of the promised initiatives were led to completion, and investors were repeatedly assured that the company was progressing as planned.

The lawsuit also claimed that Gomez purportedly signed a contract obligating her to perform but ignored it, and that the company's founders failed to communicate with investors during the company's collapse.

Investor Concerns

Investors pointed to two major reports published last year as evidence of Wondermind's internal problems.

The lawsuit seeks to hold Selena Gomez and her mother Mandy Teefey accountable for their alleged actions.