Selena Gomez faces fraud allegations over mental health startup

Selena Gomez faces fraud allegations over her mental health startup Wondermind, according to investors who claim the singer and actor failed to fulfill her responsibilities in building and promoting the company. The lawsuit, filed in federal court in Delaware, alleges that Gomez and other company leaders misled investors about the company's prospects and her involvement in the business.

The investors put nearly $1.2 million into Wondermind Global in 2022, but allege that Gomez's social media following and celebrity profile were not used to help build the company as promised. They claim that the promised mobile app and partnerships never materialized, and that the company failed to meet basic obligations such as paying employees and vendors on time.

The lawsuit also alleges that Gomez and her mother, Mandy Teefey, failed to deliver on their contractual obligations. Teefey, who served as Wondermind's co-CEO, is also named in the lawsuit. Pierson, another co-founder and ex-business partner, denies the allegations.