Selena Gomez set out to create "the world's first mental fitness ecosystem." Instead, the startup is becoming her own personal headache.
A federal lawsuit filed Thursday offers a detailed account of what investors say went wrong at Wondermind — from an app that was never built to major corporate partnerships they allege never existed.
Gomez launched the startup in 2021 alongside her mother, Mandy Teefey, and Daniella Pierson, a business partner. The lawsuit accuses Gomez, her cofounders, and Wondermind of defrauding investors, among other claims.
The investors include Brent Saunders, the CEO of Bausch + Lomb and former CEO of Allergan, and entrepreneur and real-estate investor Marc Roberts.
"The Plaintiffs invested nearly $1.2 million in Wondermind Global Inc. because the Defendants 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," the complaint says.
The investors said Wondermind's cofounders also misrepresented key parts of the company's business and growth plans. Specifically, that Gomez — a world-famous actor and singer — would play a major role at the company as its head of marketing; that Pierson secured partnerships with firms such as JPMorgan and Fidelity; and that "revenue-generating initiatives" were already underway.
The investors are seeking the return of their investments or damages, as well as costs and attorneys' fees.
"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 says.
Wondermind has made some offerings available to users. Its website features articles, interviews, and worksheets about mental health. The startup also sends out a newsletter and has produced two podcasts.
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Gomez, Teefey, and Pierson did not respond to requests for comment from Business Insider. A lawyer representing Gomez told People that the allegations against her were "completely meritless."
"The allegations that Selena Gomez engaged in any way whatsoever in any purported 'fraud' or other wrongdoing are completely meritless, both factually and legally," Mathew Rosengart told the outlet on Saturday.
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