Selena Gomez is firmly defending herself against allegations of fraud related to her mental health startup, Wondermind. The legal dispute has emerged following a lawsuit filed by investors who accuse Gomez, her mother, Mandy Teefey, and , founder of The Newsette, of misleading them about the company’s viability.
Details of the Lawsuit
The investors claim they invested nearly $1.2 million into Wondermind, which launched in 2021, but were misled regarding the startup’s infrastructure, leadership, and future prospects as it began to fail. The trio faces accusations including securities fraud, common law fraud, and breach of contract.
Gomez’s Legal Response
On Wednesday, attorneys for Gomez submitted a motion seeking to dismiss her from the case. They argue that she was wrongfully included in the lawsuit. Mathew S. Rosengart, Gomez’s lawyer, described the claims as “completely meritless if not frivolous.” He argued that the suggestion she engaged in any wrongdoing or fraud is “absurd.” Additionally, Rosengart indicated that they are considering further legal actions against the plaintiffs, including potential sanctions for including Gomez improperly.
Claims Against Gomez
In the motion to dismiss, Rosengart highlights that the lawsuit’s allegations against Gomez are vague and contradictory, emphasizing that she could not possibly be liable as claimed. The filing asserts that Gomez “did not communicate with Plaintiffs, was not involved in Wondermind, Inc.’s securities offerings, and was not in a position to control the acts and communications of the Company.”
Investor Allegations
The lawsuit contends that investors were led to believe that a groundbreaking Wondermind app was forthcoming, promising advertising deals and celebrity cover stories. Instead, the complaint insists that for three years, while the company faced challenges, neither Gomez, Teefey, nor Pierson communicated with the investors whose funds were key to the company’s operations.
Gomez’s Role in Wondermind
In their legal argument, Rosengart clarified Gomez’s involvement with Wondermind, stating that while she supported her mother and invested in the startup, she did not manage its operations. He noted that leadership was predominantly held by Teefey and Pierson, who co-managed the company as co-CEOs and board members. Gomez was retained as a consultant and held the title of Chief Impact Officer (CIO), but was not involved in the daily management of the startup.
