Selena Gomez Asks Judge to Dismiss Wondermind Fraud Claims

Selena Gomez asks judge to dismiss a fraud lawsuit brought by investors in Wondermind, the mental health startup she co-founded with her mother. Her lawyers filed the motion Wednesday in federal court in Delaware, arguing the complaint does not identify a false statement Gomez personally made to investors.

The investors allege that they put nearly $1.2 million into Wondermind after receiving misleading promises about its leadership, resources and infrastructure. Their lawsuit names Gomez, her mother Mandy Teefey and former business partner Daniella Pierson, and brings claims of common-law fraud, breach of contract and securities fraud.

Gomez asks judge to dismiss four claims

The motion asks the judge to dismiss all four claims against Gomez with prejudice. Her attorneys say the complaint does not specify statements she made personally and contend she was not a Wondermind board member or manager.

Gomez’s lawyer, Mathew S. Rosengart, called the allegations “absurd” in a statement. He said the defense was also exploring sanctions against the plaintiffs for including Gomez. The motion describes the allegations about her as vague, generalized and contradictory, and says she did not commit fraud.

According to the motion, Teefey and Pierson handled management as co-CEOs and board members. Gomez was retained as a consultant and given the title Chief Impact Officer, the filing says. Her lawyers argue she never agreed to manage the company and did not hold a minority stake.

Investors describe a different role for Gomez

The complaint says the founders pitched a broad “mental fitness” business with a phone app, advertising deals and celebrity-driven content. It alleges Gomez would be “intimately involved” as head of marketing. Investors claim many initiatives never happened and that they received false updates while being kept unaware of mismanagement and financial turmoil.

The two investment entities, Wondermind SRS 44 LLC and Bespoke Wondermind SPV I LLC, filed the complaint Aug. 13. They allege they learned of the company’s problems after reporting by Forbes and The Cut. The NBC News account of the filing and response is available in its report on Gomez’s motion.

The motion points to a December 2022 email from Pierson about Wondermind’s growth. Gomez was copied, court filings say. Her attorneys argue the complaint does not allege that she knew any information in the email was false.

The dispute follows an earlier investor lawsuit over Wondermind. Grit Daily previously covered the investors’ original fraud claims. Its broader coverage also includes an Imperial College study of startup fraud and a separate founder fraud case.

Co-defendants deny wrongdoing

Wondermind and Teefey did not immediately respond to a request for comment, according to NBC News. Pierson also did not respond to that request and has denied wrongdoing.

In a statement this month, Pierson said she welcomed the chance to present documentation and financial records. She said she had never used investor funds for personal expenses, had invested her own money in the business and had not drawn a salary.

Those denials and the defense arguments remain positions in a contested case. The judge will decide whether the claims against Gomez proceed. Her motion asks for dismissal with prejudice.