Selena Gomez Pushes Back Against 'Frivolous' Fraud Claims
Lucy Hooker, Business reporter
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Selena Gomez's social media accounts brim with adoring fans: two million likes for her most recent post showcasing her and her husband in a rose-petal strewn hotel, and thousands of comments praising her beauty, her lipstick, and the perfume brand she founded.
This week, the PR focus for the star—who rose to fame on the Disney channel but has since moved into songwriting, films, and TV drama—was supposed to be on the upcoming series six of Only Murders in the Building, which transfers its podcasting sleuths to London for their next adventure.
However, the wider chat, outside those friendly spaces, has veered off-script and is largely centered on a less flattering topic: claims from investors who allege she breached her contract by not properly backing the mental health platform Wondermind, which she co-founded with her mother five years ago. As a result, the investors argue, they were defrauded of the nearly $1.2m they invested.
Gomez is vigorously defending herself against these allegations—her lawyer has even requested that she be dismissed from the case entirely, stating that the claims against her are "threadbare" and arguing she should never have been "dragged into" the case in the first place.
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Fans may not pay much attention to the court case.
The investors claim they were told that "Selena Gomez, one of the most famous women on earth, with a billion-dollar brand and a platform unmatched in social media, would be actively building the company as its head of marketing."
Gomez's attorney, Matthew Rosengart, counters that the investors' allegations are "vague, generalized, and contradictory" and that Gomez never agreed to, nor did she manage the company, or make the commitments they suggest.
"The claims against her are meritless if not frivolous," he said.
Mr. Rosengart added that the legal team is "exploring other avenues of relief for Ms. Gomez including sanctions against plaintiffs."
Gomez's emphatic pushback may stem from a concern for her reputation, but it also shifts the spotlight onto her mother, who faces the fraud allegations alongside the company and a third co-founder.
Lauren Beeching, a crisis PR commentator and founder of Honest London, notes that Gomez is far from the first celebrity to work with a close family member. It can sometimes work, like with the Jenner-Kardashian family or the tennis-playing Williams sisters.
However, there are also numerous examples—from the Beckhams to Britney Spears—where family brands and businesses don't mix well.
Working with close relatives, whether that's a sibling or a parent, or someone else, is almost always a riskier approach, says Beeching.