Selena Gomez Sued by Wondermind Investors Over Fraud Claims
Selena Gomez and the co-founders of mental-health company Wondermind Global have been sued by investors who allege they were misled about the company's business prospects and Gomez's expected involvement in building the brand.
The federal complaint was filed in the U.S. District Court for the District of Delaware on August 13 by Wondermind SRS 44 LLC and Bespoke Wondermind SPV I LLC. The investors say they put nearly $1.2 million into Wondermind after receiving representations about the company's leadership, planned products and revenue opportunities.
Gomez launched Wondermind with her mother, Mandy Teefey, and entrepreneur Daniella Pierson as a platform focused on what the company describes as “mental fitness.” Wondermind's own website continues to identify Gomez as one of its co-founders.
According to the complaint, investors were told Gomez would play an active role in developing the company as its head of marketing, using her international profile and social-media reach to promote the business.
The plaintiffs allege that commitments made before their investment were not fulfilled. Among their claims, they say a planned Wondermind mobile app was never launched and that revenue-generating initiatives described to them did not materialise.
The lawsuit includes claims of securities fraud, common-law fraud and breach of contract. The investors are seeking to recover their investment alongside damages, costs and other relief.
The allegations have not been proven in court.
Reuters independently confirmed the filing and reported that a representative for Gomez had not immediately responded to a request for comment.
Entertainment Weekly also reviewed the complaint and reported that Gomez, Teefey, Pierson and Wondermind are all named as defendants.
