Investors have sued Selena Gomez, her mother Mandy Teefey and entrepreneur Daniella Pierson in Delaware federal court over claims that their mental-health startup Wondermind misrepresented its leadership, planned products and commercial partnerships. The lawsuit alleges securities fraud, common-law fraud and breach of contract, and seeks to undo the investment agreement and recover damages; the claims have not been proven.

The investors’ companies say they put $1.2 million into Wondermind after being told it would build an app, secure major advertising deals and benefit from Gomez’s promotional involvement and Pierson’s business initiatives. They allege the promised partnerships, initiatives and app never materialised, and that the founders did not disclose the company’s problems for three years. Pierson denies wrongdoing, saying she invested her own money, took no salary and welcomes the chance to provide financial records.