Selena Gomez Fraud Lawsuit: Lawyer Calls Claims 'Completely Meritless' as She Seeks Dismissal

Selena Gomez is fighting allegations that she defrauded investors in Wondermind, with her lawyer calling the claims 'completely meritless' as her legal team prepares to seek their dismissal. Attorney Mathew S. Rosengart said Gomez's team would 'vigorously defend' her and is filing a motion to dismiss the allegations.

The lawsuit was filed in federal court in Delaware by Wondermind SRS 44 LLC and Bespoke Wondermind SPV I LLC against Gomez, her mother Mandy Teefey, former business partner Daniella Pierson and Wondermind Global.

Investors Allege Nearly $1.2 Million Was Misrepresented

The investors allege they put nearly $1.2 million (£900,000) into Wondermind in 2022 after receiving misleading representations about the startup's business prospects, leadership, partnerships and resources.

The complaint includes allegations of securities fraud and fraudulent inducement. Investors claim they were told Wondermind had secured major corporate partnerships or was pursuing deals with companies including JPMorgan and Fidelity.

They further allege they were presented with advertising opportunities that could generate about $5 million (£3.6 million) in revenue. Reports on the complaint also indicate investors were shown material suggesting Wondermind's valuation could eventually exceed $4 billion (£3 billion).

Investors allege the company's planned mobile app was never built despite representations that it was being developed. They also claim Wondermind's financial and operational difficulties were concealed from them.

The allegations have not been proven in court.

Why Selena Gomez Is Named in the Lawsuit

Gomez is accused of failing to fulfil contractual obligations connected to her role as Wondermind's head of marketing. Investors allege they were led to believe Gomez would use her celebrity profile and social-media reach to promote the company, support its initiatives and help drive its growth.

The complaint alleges Gomez became less involved as Wondermind encountered financial and management problems. Investors say they did not learn the full extent of those difficulties until a 2025 investigation detailed turmoil inside the startup.

Wondermind later ran out of cash, struggled to pay employees and vendors and laid off nearly two-thirds of its workforce.

The investors are seeking to recover their investment, along with damages and legal costs.

Gomez's Lawyer Calls Claims 'Completely Meritless'

Rosengart rejected the allegations against Gomez, describing them as '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,' he said.

A source close to Gomez said she invested millions of dollars in Wondermind, including after she became aware of the company's financial difficulties. The source also said Gomez was not involved in the company's day-to-day operations.

Pierson has denied the allegations, saying she invested her own money into the company and did not take a salary. Teefy has not publicly responded to the lawsuit.

Investors Say Refund Efforts Failed

The dispute also centres on what happened after investors say they discovered Wondermind's financial problems.

The investors allege they demanded their money back after learning about the company's difficulties. They claim Teefy subsequently told them an escrow account had been established to facilitate refunds.

The investors allege the account did not exist and that their money was never returned.

Wondermind launched in 2021 as a mental-health venture founded by Gomez, Teefy and Pierson. The company promoted a 'mental fitness' concept through content and other initiatives while planning a mobile app.

The company's financial difficulties became public in 2025, when reports detailed problems inside the startup and its inability to meet some financial obligations.

The investors are seeking to recover their investments, damages and legal fees. Gomez's legal team is seeking dismissal of the claims, leaving the allegations to be tested in federal court.