Selena Gomez is seeking the dismissal of a federal lawsuit alleging she defrauded investors in Wondermind, a mental health startup she co-founded with her mother, Mandy Teefey. In a motion filed Wednesday in the U.S. District Court for the District of Delaware, lawyers for the pop star characterized the claims as absurd
and completely meritless
, according to NBC News.
Selena Gomez Moves to Dismiss Fraud Lawsuit Over Wondermind Startup
Allegations of Misrepresentation and ‘Abject Dereliction’
Wondermind launched in February 2022 as a mental fitness ecosystem
designed to democratize mental health through podcasts, television, films, and a website. Investors claim they were promised a groundbreaking app
, advertising deals, and celebrity cover stories that never materialized. According to a lawsuit detailed by Yahoo Finance, the company also falsely claimed to have secured institutional employer partnerships with Fidelity and JPMorgan Chase & Co.
A central point of the dispute is Gomez’s role. Plaintiffs argue that Gomez was the pitch
and that her ability to market the company to her social media following of over 500 million people was the primary draw for investors. The lawsuit alleges Gomez’s actual involvement was an abject dereliction
of duty, claiming she ignored contractual obligations and actively distanced herself from the company due to personal struggles with her mother.
Defense Arguments and Motion for Sanctions
Mathew S. Rosengart, attorney for Gomez, argues that the lawsuit fails to specify any false statements made personally by the singer to investors. The defense motion asserts that Gomez was not a member of the board and never agreed to manage the company. Instead, the filing states that management was vested in Teefey and Pierson, who served as co-CEOs and board members, while Gomez was retained as a consultant with the title of Chief Impact Officer.
Gomez’s legal team is not only seeking to dismiss all four claims against her with prejudice but is also exploring sanctions against the plaintiffs for improperly including her in the case. According to Forbes, the attorneys argue the allegations are so legally deficient
that they may warrant Rule 11 sanctions against the investors’ lawyers.
Reports of Internal Chaos and Financial Turmoil
The investors claim they only became aware of the company’s instability after reports from Forbes and The Cut. A report by The Cut detailed alleged erratic behavior by Mandy Teefey, including angry outbursts, days-long disappearances, and purported drug use that led one employee to call her office a drug den
.
Financial instability was further highlighted in reports from Forbes, which stated that Wondermind:
- Slashed its workforce by nearly two-thirds due to crushing debt.
- Failed to pay employees and vendors on time.
- Required Teefey to take a loan against her own home to cover payroll.
While the lawsuit names three defendants, the claims vary. Daniella Pierson is specifically named in allegations of conversion, unjust enrichment, and securities fraud, with plaintiffs claiming she misappropriated investor funds for personal use. Pierson has categorically denied these allegations, stating she never used investor funds for personal expenses and instead invested her own money without drawing a salary.
