RESOLVING THE LEDGER
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Selena Gomez is denying accusations that she defrauded investors in Wondermind, which she co-founded with her mother Mandy Teefey and their former business partner Daniella Pierson.
Earlier this week, investors filed a suit against the company and its founders, claiming they had invested nearly $1.2 million into Wondermind Global Inc. and were misled about the organization's infrastructure, leadership, and resources. Gomez, Teefey, and Pierson, along with Wondermind, are being sued over counts of alleged securities fraud, common law fraud, breach of contract, and more.
In a statement provided to Rolling Stone on Saturday from Gomez's attorney, Mathew S. Rosengart, Gomez denies the allegations. "The allegations that Selena Gomez engaged in any way whatsoever in any purported 'fraud' or other wrongdoing are completely meritless, both factually and legally," Rosengart said. "We will vigorously defend these false allegations and indeed are filing a motion to dismiss the baseless claims against her." The statement was first reported by People .
According to the suit reviewed by Rolling Stone , the plaintiffs — Wondermind SRS 44, LLC and Bespoke Wondermind SPV 1, LLC — claimed they were led to believe that revenue-generating streams, including a "groundbreaking" app, advertising deals, and celebrity cover stories, were already in motion. Instead, the complaint alleges, "for three years, while the Company quietly collapsed around them, not one of its founders, officers, or directors said a word to the investors whose money was funding the collapse." The plaintiffs are seeking rescission of their investments in Wondermind, as well as damages and costs.
The lawsuit also claims the plaintiffs did "not discover the facts underlying their claims" until The Cut published an article into the startup's operations last year. The outlet reported tensions between Gomez and her mother, as well as a power struggle between Teefy and Pierson. According to the complaint, The Cut's report revealed the "state of utter disarray" of the company to the plaintiffs, including Teefy's alleged "substance abuse disorder and her gross mismanagement" of the company; Gomez's "abject dereliction of her duties" and "her active efforts to distance herself from it"; and the startup's failure to fulfill basic obligations such as "timely paying its employees and vendors." Editor’s picks The 250 Greatest Albums of the 21st Century So Far The 100 Best TV Episodes of All Time The 500 Greatest Albums of All Time 100 Best Movies of the 21st Century
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