Selena Gomez sued for fraud over mental health start-up

Selena Gomez has been accused of defrauding investors of her mental health start-up, Wondermind Global.

The singer-actress, her mother Mandy Teefey, and entrepreneur Daniella Pierson founded the company in 2022, with the trio seeking to offer the "world's first mental fitness ecosystem to democratise and destigmatise mental health for everyone".

But on Thursday, investors filed a lawsuit in a Delaware federal court in which they claimed multiple counts of fraud and breach of contract.

They alleged they invested almost $1.2 million (£880,000) in the venture after the founders allegedly "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."

However, the plaintiffs alleged that the partnerships "did not exist, the initiatives never materialized. The app was never built".

"And 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 complaint reads.

The investors are seeking a jury trial and the return of their investment in Wondermind, as well as damages, including legal fees.

Representatives for Selena, 34, and Mandy, 50, have not yet responded to the lawsuit.

Yet, a spokesperson for Pierson issued a statement to USA TODAY.

"Daniella categorically denies the allegations against her and welcomes the opportunity to present concrete documentation and financial records that establish the facts. To be clear, she has never used investor funds for personal expenses. Quite the opposite: Daniella invested her own money into the business and did not draw a salary from the company," they commented.

Selena is reportedly a billionaire, with her wealth driven by the success of her cosmetics brand, Rare Beauty.