Superstar Selena Gomez and her mother are accused of defrauding investors of their mental health startup, Wondermind, in a federal lawsuit filed Thursday.Wondermind was co-founded by Gomez, her mother, Mandy Teefey, and Daniella Pierson in November 2021 and touts mental fitness practices and tools.The suit accuses Wondermind and its founders of falsely representing to investors the company’s infrastructure, leadership and partnerships and concealing the alleged fraud for more than three years.The founders told investors they would build a Wondermind app, boasted advertising deals and secured celebrity cover stories, none of which came to fruition, the complaint said.
Investors poured nearly $1.2 million into Wondermind, but the trio falsely represented the company’s plans to make it profitable, the suit said.It alleges that investors were kept in the dark until two bombshell media reports portrayed that Wondermind was a company in utter disarray.The suit was filed in a Delaware federal court by Wondermind SRS 44 LLC and Bespoke Wondermind SPV I LLC, limited liability companies that invested in the startup.
They accuse the company and the founding trio of securities fraud, common law fraud and breach of contract and are seeking rescission — meaning a legal cancellation of a contract — of their investment, as well as damages.Reps for Wondermind, Gomez, Teefey and Pierson did not immediately respond to requests for comment Thursday.No products, no updates — and no SelenaInvestors, in the suit, said that they believed the money they gave Wondermind would rapidly scale and build a full suite of company products, including an app, podcast, an editorial publication and other wellness products.They also believed that the company’s value lay in Gomez’s involvement as a celebrity with a massive, loyal fan base.
The suit alleges that Wondermind had indicated that Gomez would be “intimately involved in the Company” as head of marketing and involved in publ...