Selena Gomez’s legal team has strongly denied allegations of fraud against the actor and singer over Wondermind, the mental health startup she co-founded with her mother, Mandy Teefey, and former business partner Daniella Pierson, reports The Hollywood Reporter.
The lawsuit was filed on Thursday by Wondermind investors, who accused Gomez, Teefey and Pierson of misleading them about the company’s leadership, partnerships and business plans.
Gomez’s lawyer, Mathew S. Rosengart, rejected the claims in a statement shared with People, saying there was no factual or legal basis for accusing the star of wrongdoing.
“The allegations that Selena Gomez engaged in any way whatsoever in any purported ‘fraud’ or other wrongdoing are completely meritless,” Rosengart said.
He added that Gomez’s legal team would “vigorously defend” her against the allegations and was preparing a motion to dismiss the claims.
Wondermind was launched in November 2021 as a platform focused on mental fitness, with Gomez, Teefey and Pierson among its co-founders.
According to the lawsuit, investors were allegedly told that the company would develop an app and secure major advertising partnerships, celebrity campaigns and other revenue-generating initiatives.
The plaintiffs claim that several of those plans never materialised.
“The partnerships did not exist. The initiatives never materialized. The app was never built,” the complaint alleges.
The investors further claim that the founders failed to inform them as the company faced financial difficulties.
The lawsuit accuses Gomez, Teefey and Pierson of securities fraud, common-law fraud and breach of contract. The plaintiffs are seeking to rescind their investment agreement and recover damages.
Pierson has also rejected the accusations. In a statement through her representative, she said she welcomed the opportunity to provide documentation and financial records to establish her account of events.
Her representative also denied that Pierson had used investor funds for personal expenses, saying she had invested her own money in the company and had not received a salary from Wondermind.
The legal dispute is now set to play out in court, with Gomez’s team seeking to have the claims against her dismissed.
