Selena Gomez is defending herself after being accused of fraud by investors in the troubled company Wondermind. Gomez is a co-founder of the company along with her mom Mandy Teefey and their former business partner Daniella Pierson.
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“The allegations that Selena Gomez engaged in any way whatsoever in any purported ‘fraud’ or other wrongdoing are 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,” her litigator, Mathew S. Rosengart, said in an exclusive statement to People.
Two different companies, Wondermind SRS 44 LLC and Bespoke Wondermind LLC filed the lawsuit, as previously reported. The companies say they invested over $1 million in the mental health company primarily based on Gomez’s promise of involvement.
According to the suit, “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 lawsuit accuses the three women of securities fraud, common-law fraud, and breach of contract, and are seeking rescission — which is a legal cancellation of the investment contract, and damages.
Neither Pierson, Teefey, nor Gomez provided updates about the company unless pushed, investors claim. And when they did give updates, “they both affirmatively misrepresented the status of the Company’s operations and concealed material information about ongoing issues at the Company,” the suit claims.
After news of the lawsuit broke, Pierson categorically denied the allegations. In a statement to NBC News, she said she “welcomes the opportunity to present concrete documentation and financial records that establish the facts.”
Teefey has not commented on the lawsuit.