Selena Gomez Faces Fraud Allegations
Selena Gomez is facing fraud allegations from investors linked to her failed mental-health startup, Wondermind Global Inc.
Five investors filed a lawsuit against Gomez and her co-founders in a Delaware federal court. They claim the company made false promises while raising money in 2022.
Wondermind reportedly claimed a $95 million valuation during its fundraising efforts. The company also promised products, including a mobile app. However, the investors say those promises were never fulfilled.
What Happened to Wondermind?
Gomez launched Wondermind in 2021 with her mother, Mandy Teefey, and Daniella Pierson. The startup focused on “mental fitness” and aimed to make mental health part of everyday routines.
Gomez served as the company’s chief impact officer and head of marketing. According to the lawsuit, investors expected her celebrity status to help grow the business.
The investors claim Wondermind planned to use Gomez’s social-media audience of more than 500 million people. They say this exposure was a major reason they invested.
However, the lawsuit claims those plans never happened. “The initiatives never materialized,” the investors’ lawyers wrote.
Investors Say the Startup Collapsed
Wondermind raised $5 million during an early funding round in 2022. Investors included Serena Williams’s venture fund, Lightspeed Venture Partners and Sequoia Capital.
The five investors who filed the lawsuit reportedly invested $1.2 million. One of them was Brent Saunders, a former Allergan CEO.
The investors also claim Gomez failed to meet some of her contractual duties. They linked this partly to her “long-running personal struggles” with her mother.
They further allege that the founders stayed silent as Wondermind struggled financially. The app was never built, and the promised revenue reportedly never arrived.
Gomez Has Not Responded
Gomez, Teefey and Pierson had not immediately responded to requests for comment. Wondermind also did not immediately respond.
For now, the allegations remain claims made in court. The lawsuit must still go through the legal process before any wrongdoing is established.
