Selena Gomez asks judge to dismiss absurd fraud claims over mental health startup

Selena Gomez and her legal team filed a motion in Delaware federal court asking a judge to dismiss an investor lawsuit alleging fraud over their mental health startup, Wondermind. Gomez’s attorney called the claims absurd, while investors maintain they were misled into sinking nearly $1.2 million into a failing enterprise.

The Delaware Federal Lawsuit and Investor Allegations Against Wondermind

Two limited liability companies, Wondermind SRS 44 LLC and Bespoke Wondermind SPV I LLC, filed a nearly 50-page federal lawsuit on August 13 in the United States District Court of Delaware. The complaint targets Gomez, her mother Mandy Teefey, and Colombian-American entrepreneur Daniella Pierson. Plaintiffs claim the co-founders misrepresented the startup’s leadership, financial resources, and operational infrastructure.

Launched publicly in February 2022 following a November 2021 announcement, Wondermind was pitched as the world’s first mental fitness ecosystem. Investors testified they were promised advertising deals, celebrity cover stories, and a groundbreaking app. Instead, according to court documents, those initiatives never materialized.

“These representations were false. The partnerships did not exist. The initiatives never materialized. The app was never built … There was no legitimate enterprise in the works, much less a lucrative one.”

Plaintiffs’ complaint, via San Antonio Express-News

The lawsuit accuses the leadership of concealing internal disarray while the company quietly collapsed around them. Plaintiffs state they only learned of the chaos after reading reporting from San Antonio Express-News detailing missed payrolls and executive dysfunction.

Mathew Rosengart Defends Selena Gomez and Threatens Sanctions

Represented by attorney Mathew S. Rosengart, Gomez pushed back sharply against the litigation on Wednesday by filing a formal motion to dismiss all four claims with prejudice.

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Selena Gomez asks judge to dismiss absurd fraud claims over mental health startup
Photo: Forbes

Gomez’s legal team argued that day-to-day management rested entirely with Mandy Teefey and Daniella Pierson, who operated as co-CEOs and board members. The motion emphasizes that the lawsuit fails to cite any direct false statements made personally by Gomez to the plaintiffs.

“The notion that Selena engaged in ‘fraud’ or any other wrongdoing is absurd — and in addition to filing our motion we are exploring other avenues of relief for Ms. Gomez including sanctions against plaintiffs for improperly including her.”

Mathew S. Rosengart, attorney for Selena Gomez, via NBC News

In addition to seeking a complete dismissal, Gomez’s attorneys raised the specter of Rule 11 sanctions, arguing that the claims against the singer are so legally deficient that the court should punish the plaintiffs’ legal representation.

Daniella Pierson Responds and Financial Turmoil at Wondermind

The legal fallout also touches co-founder Daniella Pierson, who was ousted following an executive power struggle with Teefey. Pierson has denied any wrongdoing, releasing a statement to NBC News welcoming the opportunity to present financial records.

Selena Gomez asks judge to dismiss absurd fraud claims over mental health startup
Photo: San Antonio Express-News

“To be clear, she has never used investor funds for personal expenses. Quite the opposite: Daniella invested her own money into the business and did not draw a salary from the company.”

Daniella Pierson, co-founder, via NBC News

Financial documents and previous reports outline a stark decline for the mental health startup. According to Forbes reporting, Wondermind ran out of cash, slashed its workforce by nearly two-thirds, and struggled to cover employee payroll, with Teefey even taking out a loan against her own home to pay staff. Plaintiffs in the Delaware action are seeking to recover their full $1.2 million investment alongside additional damages.

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Selena Gomez SLAMS “Meritless” Lawsuit — Lawyer Moves to Dismiss “Baseless” Claims

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