Selena Gomez hit with fraud lawsuit over collapsed Wondermind mental health startup - Los Angeles Times
Investors are suing Selena Gomez for fraud following the collapse of her mental health startup, Wondermind.Summary
Pop star Selena Gomez and co-founders Mandy Teefey and Daniella Pierson are facing a fraud lawsuit filed in Delaware federal court. Five investors allege that the founders failed to fulfill contractual obligations to promote Wondermind Global Inc., a mental health startup that collapsed last year. The lawsuit claims the company misrepresented its valuation of $95 million and falsely promised the development of a mobile app and various revenue-generating initiatives.
According to the complaint, investors were lured by the promise of leveraging Gomez's massive social media following to reach hundreds of millions of people. However, the plaintiffs allege that the promised products never materialized and that the company's leadership concealed its financial and management struggles. The lawsuit specifically mentions that Gomez's involvement was central to the company's perceived value, but she allegedly failed to meet her duties as chief impact officer.
Despite raising $5 million in 2022 from high-profile sources like Serena Williams' venture fund, Lightspeed Venture Partners, and Sequoia Capital, Wondermind failed to achieve its goals. The plaintiffs, including former Allergan CEO Brent Saunders, are now seeking to recoup their investments after learning of the company's distress through media reports.
(Source：Los Angeles Times)