RESOLVING THE LEDGER
This is one outlet's own report from Billboard — the article as it was filed. Other outlets are covering the same event; open the full story to compare every source side by side.
See the full story · 3 sources
Selena Gomez is hitting back hard against claims that she was involved in fraud at the mental health startup Wondermind, saying she had nothing to do with the situation and calling the lawsuit “egregiously improper and legally deficient.”
Gomez’s lawyers filed a motion on Wednesday (Aug. 26), obtained by Billboard , to dismiss the pop star and actress from a lawsuit brought two weeks ago by five Wondermind investors. These investors allege they were duped into investing $1.2 million in the struggling company led by Gomez’s mother, Mandy Teefey .
“The notion that Ms. Gomez engaged in any form of ‘fraud’ is absurd,” writes a team of lawyers led by Mathew Rosengart , who’s best known for helping Britney Spears end her conservatorship. “She should never have been dragged into this action, and we respectfully submit she must be dismissed.”
The lawsuit centers on claims that Teefey and her former co-CEO, Daniella Pierson , misrepresented the company’s structure and finances to investors Brent Saunders , Marc Roberts , EJ Solimine , Andrew Resnick and Mark Peikin . One allegation is that Teefey and Pierson falsely said Gomez would be heavily involved as Wondermind’s head of marketing, when in reality the star worked to “actively distance” herself from the company.
According to Gomez’s lawyers, this claim demonstrates in and of itself that she should not be involved in the lawsuit. The attorneys say that since Gomez had no role in Wondermind’s fundraising or management, she “could not possibly have engaged in any ‘fraud.’”
The lawsuit tries to plead around this issue by suggesting that Gomez had access to Wondermind’s financial numbers, and thus she must have known that company investors were being lied to. But Gomez’s lawyers say this is faulty too.
“The mere fact that Ms. Gomez — who is literally one of the world’s busiest women — might have had the ability to request information by virtue of being a co-founder/consultant is not enough,” reads the motion to dismiss. “The lack of a single allegation that Ms. Gomez ever said anything about Wondermind’s operational state or financial condition — or any allegations stating that Ms. Gomez was privy to the other Defendants’ communications with Plaintiffs — requires dismissal of the fraud claims against Ms. Gomez.”
In a statement sent to Billboard , Rosengart says their motion demonstrates that “the claims against her are completely meritless, if not frivolous.”
“In addition to filing our motion, we are exploring other avenues of relief for Ms. Gomez, including sanctions against Plaintiffs for improperly including her,” adds Rosengart.
The investors’ attorneys did not immediately return a request for comment on Wednesday.
Wondermind launched in 2021 with plans for a suite of mental health media initiatives, including a digital magazine, mobile app and podcast. The company was thrust into the spotlight last year, when the Cut published a bombshell article reporting that the company’s finances were in dire condition due in part to Teefey’s alleged substance abuse issues and erratic behavior.
In the Cut article, Teefey denied allegations of company mismanagement and said Wondermind remained viable: “I started Wondermind because I wanted to help people with mental illness,” she said in a statement to the magazine. “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.”
AIPROPX is an independent multi-source news index — we track, compare, and connect coverage from across the web into one place you won't find anywhere else.