Selena Gomez's startup faced fraud allegations

Investors have filed a lawsuit against Wondermind, the mental health company and Selena Gomez's partner, accusing the star of misleading them about the company's success and her actual involvement. The lawsuit states that the company was launched in 2021, with Gomez listed as a founding partner and CEO of influence, and expected to invest $1.2 million in 2022 to grow the project. However, the investors claim that the company has been collapsing for the past three years, and that Gomez and the other parties failed to disclose these issues. The suit is directed against Gomez, her mother Tivy, and her former partner Piterson, accusing them of fraud and breach of contract, with the investors demanding the return of their investments and damages. The company was valued at $95 million in 2022, but the lawsuit notes that many of the announced partnerships either didn't happen or didn't last. It is based on a report in "The Cut" revealing internal conflicts and suggesting that investor funds were used to cover personal expenses, just before Piterson left the company in 2023.

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