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Selena Gomez faces investors lawsuit over Wondermind promises
The lawsuit seeks about $1.2 million in investor funds plus costs and damages, alleging the company failed to deliver promised partnerships and an app.
BBC Business reports that five investors who backed Wondermind Global, a mental health business founded by Selena Gomez and her mother, have filed a lawsuit alleging Gomez and other founders failed to carry out promises about building the brand. The investors claim Wondermind represented that ad deals, celebrity coverage, an app, and other initiatives were already underway, and that Gomez would take an active role as head of marketing. The suit says the alleged failure left the company in a financial “state of financial calamity.”
The complaint seeks recovery of around $1.2 million, or £890,000, which the investors say was originally invested, along with costs and damages. It also alleges the company missed basic obligations such as timely payments to employees and vendors. According to BBC Business, Wondermind was launched about five years ago, and the investors allege promised partnerships never materialized. The lawsuit also states that Gomez allegedly signed a contract obligating performance but did not follow through.