Selena Gomez files to dismiss fraud lawsuit

Selena Gomez is pushing back against a lawsuit accusing her and business partners of fraud related to the mental health company Wondermind.

The lawsuit, filed by two investment groups, alleges that Gomez, her mother Mandy Teefey, and former business partner Daniella Pierson misrepresented aspects of the company's leadership and operations. 

In response, Gomez's attorney filed a motion earlier this week seeking to have the case against her dismissed.

In the filing, Gomez's legal team argues that she was never involved in managing the company's daily operations, explaining that she invested in the business and held a minority stake, but that leadership responsibilities belonged to her mother and Pierson, who served as co-CEOs.

“Ms. Gomez agreed to support her mother Mandy Teefey, who co-founded Wondermind... Although she invested in and holds a minority stake in the Company, Ms. Gomez never agreed to and did not manage the Company,” Rosengart said in the motion. “Management was vested in Ms. Gomez’s mother, Mandy Teefey, and Ms. Pierson, who ran the Company as co-CEOs and board members. The Company, in turn, retained Ms. Gomez as a consultant and conferred on her the title of Chief Impact Officer (“CIO”).”

Gomez's attorney strongly criticised the lawsuit, calling the claims against her meritless and saying they are exploring further legal options, including possible sanctions against the plaintiffs for including her in the case. Teefey has not commented on the lawsuit.

In the original lawsuit, investors claim they contributed significant funding to the company and were unaware of its financial struggles until reports surfaced last year detailing internal issues within the company.

Reports from earlier this year also indicated that Wondermind faced financial difficulties, including struggles to pay employees. 

At the time, a source close to Gomez explained that she had invested personal funds to help support the company during that period, despite not being involved in daily operations.