Selena Gomez Moves to Dismiss 'Frivolous' Fraud Lawsuit Over Mental Health Startup
Selena Gomez's legal team has filed a motion to dismiss her from a lawsuit brought by investors who claim they lost nearly $1.2 million in the mental health startup Wondermind. The investors allege securities fraud, common law fraud, and breach of contract against Gomez, her mother Mandy Teefey, and co-founder Daniella Pierson. Gomez's attorney called the claims "absurd" and said the singer had no involvement in the company's communications or securities offerings, while also exploring sanctions against the plaintiffs.
The lawsuit stems from investments in Wondermind, launched in 2021, with investors alleging they were misled about the company's operations and leadership. The founders—Gomez, her mother Mandy Teefey, and Daniella Pierson—face accusations of securities fraud, common law fraud, and breach of contract over the reported $1.2 million loss.
Gomez's legal team filed a dismissal motion on Wednesday, arguing the singer had no direct contact with investors or role in securities offerings. Attorney Mathew Rosengart called the claims "absurd" and stated the team is considering sanctions against the plaintiffs for including Gomez improperly.
This case could influence how investors approach celebrity-backed startups, as high-profile figures may face increased scrutiny over their involvement. It may also affect public perception of mental health ventures, potentially making consumers and investors more cautious. The outcome could set a precedent for when celebrities are held liable for business partners' actions, though the dismissal motion suggests Gomez's role was minimal.