Selena Gomez, her mother Mandy Teefey and Wondermind co-founder Daniella Pierson are being sued by investors who claim they were misled about the mental-health startup’s finances and operations, according to Rolling Stone.
The lawsuit, filed Wednesday, says investors put nearly $1.2 million into Wondermind Global Inc. after being given false assurances about the company’s infrastructure, leadership and available resources. The complaint alleges they were told a new app, ad deals and celebrity cover stories were in the works.
Instead, the filing says that for three years the company was quietly falling apart while none of the founders, officers or directors informed investors that their money was helping sustain the collapse.
The trio and Wondermind are accused of securities fraud, common law fraud and breach of contract. The plaintiffs are seeking to recover their investments, along with damages and costs. Pierson is also named in a separate securities fraud claim, which accuses her of making false statements to investors, as well as conversion and unjust enrichment.
Representatives for Gomez, Teefey, Pierson and Wondermind did not immediately respond to requests for comment, according to Rolling Stone.
