The 34-year-old pop star and Only Murders in the Building star was sued alongside her mother and Wondermind co-founder Mandy Teefey, 50, former business partner Daniella Pierson, 31, and the company itself in Delaware federal court on Thursday.
Her lawyer has now branded the allegations "completely meritless" and promised to fight to have the claims dismissed.
The plaintiffs claim they were misled before investing nearly $US1.2 million ($A1.7 million) in Wondermind in 2022 and are seeking the return of their investments as well as damages, costs and lawyers' fees.
Gomez's lawyer Mathew S Rosengart said in a statement to Page Six: "The allegations that Selena Gomez engaged in any way whatsoever in any purported 'fraud' or other wrongdoing are completely meritless, both factually and legally."
Rosengart said Gomez would "vigorously defend these false allegations" and added her legal team was "indeed filing a motion to dismiss the baseless claims".
The case was brought by Wondermind SRS 44 LLC and Bespoke Wondermind LLC, which allege they were given a misleading picture of the business when they invested in September 2022.
According to the complaint, the investors claim they were led to believe Wondermind "had the infrastructure, leadership, and resources necessary for the company to launch into a profitable, one-of-its-kind mental health and wellness platform".
The lawsuit also accuses Gomez of failing to fulfil alleged responsibilities connected to marketing the company and using her considerable public profile to help develop the business.
The legal dispute comes while Gomez continues filming the sixth season of Only Murders in the Building, the hit mystery comedy in which she plays Mabel Mora alongside Steve Martin and Martin Short.
Production has moved to London for the forthcoming season, which follows the death of podcaster Cinda Canning, played by Tina Fey.
Gomez first became internationally famous as Alex Russo in Disney Channel series Wizards of Waverly Place before establishing a music career that produced hits including Come and Get It, Hands to Myself, Lose You to Love Me and Calm Down.
Her businesses have also become an increasingly prominent part of her public career, particularly cosmetics company Rare Beauty, which she founded in 2020.
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