Selena Gomez and her mother Mandy Teefey‘s mental health company is facing allegations of fraud from investors. Wondermind SRS 44 LLC and Bespoke Wondermind LLC have filed a lawsuit accusing the singer’s startup, Wondermind Global, of breach of contract. The companies sued Wondermind, Gomez, Teefey, and their former business partner, Daniella Pierson.
In their complaint, as Forbes reports, the plaintiffs state, “The partnerships did not exist. The initiatives never materialized. The app was never built. And for three years, while the Company quietly collapsed around them, not one of its founders, officers, or directors said a word to the investors whose money was funding the collapse.”
The companies also claimed that Wondermind Global made false representations about having the necessary infrastructure and resources to function.
Wondermind investors allege the company lacked key resources behind the scenes
In their lawsuit, as per TMZ, the Wondermind investors alleged that Selena Gomez’s company shared false information about having sufficient resources. The plaintiffs claimed that Wondermind made false representations about having proper leadership, partnerships and advertising deals.
The lawsuit cites an email correspondence with Pierson in May 2022, accusing Gomez’s company of misrepresenting its business success. They allegedly claimed that the company already secured partnerships with JP Morgan and Fidelity and was expected to generate $5 million in ad revenue.
The investors alleged that they were unaware of Wondermind’s issues until The Cut published an article exposing the company’s mismanagement and substance abuse by Gomez’s mother, Mandy Teefey. The article also claimed that the pop star attempted to distance herself from the company following an alleged disagreement with her mother.
Teefey later denied the allegations of substance abuse and the company facing management issues. “It’s unfortunate that a few disgruntled employees with an ax to grind can spread lies about me and distort the truth,” she said. “Even more disappointing that the media is willing to amplify their lies.”
Investors are now seeking unspecified damages, including the return of their investment in Wondermind Global.
