Selena Gomez accused of fraud by mental health startup investors

American actress-singer Selena Gomez faces a lawsuit from investors in her mental health startup, Wondermind Global, over allegations of fraud.

In the complaint filed in federal court in Delaware, the investors alleged that Gomez, along with her mother Mandy Teefey and former business partner Daniella Pierson, supposedly “falsely represented that the Company had the infrastructure, leadership, and resources necessary for the Company to launch into a profitable, one-of-its-kind mental health and wellness platform.” This, the complainants said, prompted them to invest nearly $1.2 million in the singer’s startup.

The complainants further alleged that Gomez failed to fulfill her duties despite the investors being told that she would be “intimately involved” in the company’s marketing and publicity efforts.

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The investors also claimed that several initiatives that were promised to them — including a mobile application — never materialized.

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“For three years, while the Company quietly collapsed around them, not one of its founders, officers, or directors said a word to the investors whose money was funding the collapse,” the plaintiff added, as per documents obtained by USA TODAY.

Gomez, Teefey and Pierson face multiple counts of fraud and breach of contract, as per the publication.

Pierson has denied the allegations through a statement, saying she herself “invested her own money into the business and did not draw a salary from the company.”

Gomez and Teefey have yet to comment on the matter as of this writing. /ra