RESOLVING THE LEDGER
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Accusations that Selena Gomez duped investors into putting $1.2 million into mental health startup Wondermind are baseless, the star’s lawyer, Mathew S. Rosengart, says after Gomez was named in a lawsuit filed Thursday (Aug. 13). Rosengart will be filing a motion to dismiss claims made in the suit.
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On Saturday (Aug. 15), the litigator denied allegations made against Gomez in the statement seen below, which was first published by People . Billboard independently verified the statement with Rosengart.
“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,” Rosengart said.
The lawsuit was filed on behalf of a group of five investors — Brent Saunders, Marc Roberts, EJ Solimine, Andrew Resnick and Mark Peikin — who are seeking the return of the money they invested in Wondermind, as well as additional financial damages for alleged wrongdoing by leadership at the company, which they say “quietly collapsed around them” while “not one of its founders, officers, or directors said a word to the investors.”
The group claims that Gomez, Mandy Teefey (Gomez’s mother) and Danielle Pierson (former executive), who co-founded the mental health-focused company in 2021, led them to inves in the company in 2022.
Wondermind was envisioned as a suite of mental health media initiatives, including a digital magazine, a mobile app and a podcast.
The plaintiffs allege they were promised Gomez would be actively involved as Wondermind’s head of marketing, leveraging her huge fanbase and social media following to promote companity initiatives.
The plaintiffs allege Pierson — who no longer works at the company — told them Wondermind had a “potential future valuation” of more than $4 billion, and that she’d generated $40 million a year at her prior media company, The Newsette . They were also allegedly told the company had partnerships in place with JPMorgan and Fidelity, as well as major ad deals and interest in cover story features with stars like Drake, Megan Thee Stallion, Elton John and Camila Cabello.
The lawsuit claims pitches turned out to be false, and that the investors only learned “the sheer magnitude of the fraud that the defendants had foisted upon them” when an exposé was published by The Cut last year that painted a picture of an apparently troubled financial state at Wondermind.
“The accounts in the Cut article collectively show that, from the outset, Wondermind had no plan for its future — much less a plan for achieving a multi-billion dollar valuation,” the lawsuit says.
The Cut reported in part that, after speaking with 14 current and former Wondermind employees, they’d learned Gomez distanced herself from the company soon after its launch, that finances were dire due to Teefey’s alleged erratic behavior and substance abuse issues, and that Pierson left Wondermind in 2023 due to a power struggle with Teefey; Pierson’s work at her previous employer was also under scrutiny .
“The information unearthed in this article proved not only that the company was, and is, in a state of financial calamity; it proved that the defendants’ representations about the company’s operations, personnel and financial prospects were a fiction. There was no legitimate enterprise in the works, much less a lucrative one,” Thursday’s lawsuit alleges.
Teefey denied allegations of company mismanagement, and said Wondermind remained viable, when The Cut article went to publication last year. “I started Wondermind because I wanted to help people with mental illness. It’s unfortunate that a few disgruntled employees with an ax to grind can spread lies about me and distort the truth. Even more disappointing that the media is willing to amplify their lies,” she said.
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