
Selena Gomez and her mother, Mandy Teefey, are facing a lawsuit from investors who claim they were misled about Gomez’s role in their mental health start-up, Wondermind. The investors allege that Gomez misrepresented her involvement to secure a $1.2 million investment, claiming she distanced herself from the company afterward and presented an overly optimistic view of its financial situation.
Gomez, a pop star who is famous for her mental health struggles and advocacy, lists herself as Wondermind’s “founder/CIO”attorney, Mathew S. Rosengart, has filed a motion to dismiss the lawsuit, calling the allegations “completely meritless, both factually and legally.” He argues that the investors should not have included Gomez in the case and that she is innocent of fraud. The lawsuit also includes claims of securities fraud, common law fraud, and breach of contract.
In his motion, Rosengart writes:
Ms. Gomez agreed to support her mother Mandy Teefey, who co-founded Wondermind… Although she invested in and holds a minority stake in the Company, Ms. Gomez never agreed to and did not manage the Company…
Management was vested in Ms. Gomez’s mother, Mandy Teefey, and Ms. Pierson, who ran the Company as co-CEOs and board members. The Company, in turn, retained Ms. Gomez as a consultant and conferred on her the title of Chief Impact Officer (“CIO”).
As People reports, two limited liability companies, Wondermind SRS 44 LLC and Bespoke Wondermind LLC filed a federal lawsuit against Gomez, Teefey, and their former business partner Daniella Pierson last week. Those investors claim that the three of them “falsely represented” the structure of the company, presenting Gomez as its face. Jeffrey Neiman, a lawyer for the plaintiffs tells TMZ that Gomez’s involvement was the main reason that investors were interested: “Selena wasn’t simply associated with the pitch. She was the pitch.”
The lawsuit claims that investors expected Gomez to use her social media following to promote Wondermind but that she distanced herself from the company once they had the plaintiffs’ $1.2 million investment secured. They also allege that Wondermind’s founders presented an overly positive image of the company without disclosing its financial and leadership problems, learning about them in a story that appeared in The Cut last year. The claims against Gomez include securities fraud, common law fraud, and breach of contract. They’re seeking to rescind their investments, and they’re also looking for damages and other relief.
