Selena Gomez is responding to accusations of fraud made by five investors who say they lost around $1.2 million after investing in Wondermind, the mental health business that she and her mother co-founded.

The investors claim that because of Gomez’s enormous social media following and influence, she was portrayed as a crucial character who would aid in the company’s growth. They assert that she did not fulfilll business-related obligations.

However, Gomez has vehemently denied the accusations through her attorney, Matthew Rosengart, who has requested that she be excluded from the lawsuit.

Rosengart called the allegations against the singer and actress “threadbare,” contending that she never consented to oversee Wondermind or fulfilll the promises made 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.

Along with Wondermind and another co-founder, Gomez’s mother has also come under fire in this case.

Celebrity family enterprises can increase dangers since it can be challenging to keep personal and professional obligations apart, according to crisis PR specialist Lauren Beeching.

When collaborating with family members, Beeching counselled celebrities to set up distinct roles and autonomous supervision.

“A family relationship shouldn’t be a

She said, “A family relationship shouldn’t be a company’s governance structure.”

Despite the court battle, Beeching thinks Gomez’s reputation might not be permanently harmed because her core audience might not be all that interested in the accusations.

The legal struggle over Wondermind is ongoing while Gomez pursues her entertainment career and gets ready for the forthcoming sixth season of Only Murders in the Building.