Topline
Selena Gomez’s attorneys filed a motion Wednesday to dismiss a securities fraud lawsuit brought by investors in her mental health startup, Wondermind, calling the allegations “absurd” and raising the threat of court-ordered sanctions against the investors.
US actress Selena Gomez attends the Netflix premiere of “Marty, Life is Short” at The Egyptian Theater in Los Angeles on May 6, 2026.
Photo by LISA O’CONNOR / AFP via Getty Images
Key Facts
The filing submitted in the U.S. District Court for the District of Delaware seeks dismissal of the lawsuit against Gomez, her mother and the co-founder of Wondermind, as the legal challenge claimed investors were falsely informed the company had the business infrastructure, leadership and advertising deals needed to function.
Attorneys for Gomez said the allegations “are so egregiously improper and legally deficient that they raise the specter of Rule 11 sanctions against Plaintiffs,” meaning if granted, the court could punish the investors’ lawyers.
The limited liability companies that invested in Gomez’s startup, Wondermind SRS 44 and Bespoke Wondermind SPV, have said they invested $1.2 billion in the company, doing so after meetings with co-CEOs Daniella Pierson and Gomez’s mother, Mandy Teefey—meetings Gomez was not directly involved in.
Investors also alleged Wondermind falsely claimed Gomez would be “intimately involved” in the company’s operations and marketing.
Gomez’s attorneys argue the lawsuit’s own allegations undercut the fraud theory it presents, noting Gomez is a minority shareholder, served as a consultant and was not identified as a key employee in the stock purchase agreement.
Crucial Quote
“Plaintiffs resort to vague, deficient theories based on statements supposedly made about Ms. Gomez or, even more speculatively, a claim that Ms. Gomez allegedly did not fulfill her duties to Wondermind under a contract between Wondermind and Ms. Gomez that Plaintiffs have never even seen,” Gomez’s attorneys wrote.
Key Background
The lawsuit against Gomez, Pierson and Teefey was filed Aug. 13 and accused the defendants of misrepresenting the company’s finances, overstating Gomez’s future involvement with the company and misrepresenting Teefey’s fitness, the latter claim of which was linked to a 2025 article detailing allegations of company mismanagement and substance abuse. Pierson was solely named in allegations of securities fraud, conversion and unjust enrichment, with the plaintiffs claiming she misrepresented the growth trajectory of the company to get investors to buy in and misappropriated investor funds for personal use. Wondermind was launched in 2022 with the goal of creating a mental health platform via website and an app featuring articles, interviews and podcasts. By 2025, the company had run out of cash and failed to pay its employees, Forbes reported. A separate Forbes report also found Wondermind slashed its workforce by nearly two-thirds as it dealt with crushing debt.
Further Reading
Selena Gomez’s Struggling Mental Health Startup Lays Off Nearly Two-Thirds Of Its Employees (Forbes)
Selena Gomez’s Mental Health Startup Couldn’t Pay Its Employees Last Month (Forbes)
Selena Gomez And Wondermind Startup Sued For Allegedly Defrauding Investors (Forbes)