Selena Gomez is pushing back against fraud allegations brought by five investors who claim they lost nearly $1.2 million after investing in Wondermind, the mental health company she co-founded with her mother.
The investors allege that Gomez was presented as a key figure who would help build the company through her huge social media following and influence. They claim she failed to fulfil commitments linked to the business.
Gomez, however, has strongly rejected the allegations through her lawyer, Matthew Rosengart, who has asked for her to be removed from the case.
Selena Gomez denies role in company management
Rosengart described the claims against the singer and actress as “threadbare“, arguing that she never agreed to manage Wondermind or make the commitments alleged by the investors.
He said, “The claims against her are meritless if not frivolous,” while also revealing that Gomez’s legal team was considering further action.
The case has also placed Gomez’s mother in the spotlight, as she faces the allegations alongside Wondermind and another co-founder.
Crisis PR expert Lauren Beeching said celebrity family businesses can create additional risks because personal relationships and professional responsibilities can become difficult to separate.
Expert warns celebrities about family businesses
Beeching advised celebrities to establish clear responsibilities and independent oversight when working with relatives.
She said, “A family relationship shouldn’t be a company’s governance structure.”
Despite the legal dispute, Beeching believes the case may not cause lasting damage to Gomez’s reputation because her core audience may not be particularly interested in the allegations.
The dispute comes as Gomez continues her entertainment career and prepares for the upcoming sixth series of Only Murders in the Building, while the legal battle over Wondermind continues.