Selena Gomez Calls Wondermind Fraud Suit Meritless, Seeks Dismissal

Selena Gomez is denying accusations that she defrauded investors in Wondermind, the mental health media company she co-founded in the United States with her mother Mandy Teefey and former business partner Daniella Pierson. Her attorney, Mathew S. Rosengart, said the claims are meritless and that a motion to dismiss will be filed.

Investors filed a lawsuit earlier this week against Wondermind Global Inc. and its founders, alleging they put nearly $1.2 million into the company and were misled about its infrastructure, leadership and resources. The suit names Gomez, Teefey, Pierson and Wondermind as defendants on counts including alleged securities fraud, common law fraud and breach of contract.

In a statement, Rosengart said:

“The allegations that Selena Gomez engaged in any way whatsoever in any purported ‘fraud’ or other wrongdoing are completely meritless, both factually and legally. We will vigorously defend these false allegations and indeed are filing a motion to dismiss the baseless claims against her.”

Investor allegations

The plaintiffs, Wondermind SRS 44, LLC and Bespoke Wondermind SPV 1, LLC, claim they were led to believe that revenue-generating streams, including a “groundbreaking” app, advertising deals and celebrity cover stories, were already in motion. Instead, the complaint alleges, “for three years, while the Company quietly collapsed around them, not one of its founders, officers, or directors said a word to the investors whose money was funding the collapse.”

The plaintiffs are seeking rescission of their investments in Wondermind, as well as damages and costs.

Report on company tensions

The lawsuit also claims the plaintiffs did not discover the facts underlying their claims until a 2024 article examined the startup’s operations. The report described tensions between Gomez and her mother, and a power struggle between Teefey and Pierson. According to the complaint, the article revealed a “state of utter disarray” at the company, including:

• Teefey’s alleged “substance abuse disorder and her gross mismanagement” of the company
• Gomez’s “abject dereliction of her duties” and “her active efforts to distance herself from it”
• The startup’s failure to fulfill basic obligations such as “timely paying its employees and vendors”