American singer Selena Gomez and her mother, Mandy Teefey, have been sued by investors who accuse them of misrepresenting the financial health and management of their mental health platform, Wondermind.
In the lawsuit, investors alleged that Gomez presented herself as an active co-founder but failed to carry out her duties after securing funding. They also accused company leadership of misrepresenting business potential while the startup suffered severe financial distress.
According to the suit, the investors only discovered the company’s financial troubles following a media investigation that revealed internal disarray, late payments to staff and vendors, and operational mismanagement.
The suit claims company executives kept investors in the dark for three years while the firm collapsed.
Teefey has denied the allegations of mismanagement, describing the claims as falsehoods pushed by former employees.
The investors are suing for securities fraud and are seeking financial compensation, including a full refund of their investment capital.
