Selena Gomez and her mother, Mandy Teefey, are facing a federal lawsuit over their mental health startup, Wondermind. The lawsuit, filed in Delaware, accuses the duo of defrauding investors by falsely representing the company’s infrastructure, leadership, and partnerships.
Allegations of Misrepresentation
The lawsuit claims that Gomez, Teefey, and co-founder Daniella Pierson misled investors about the company’s plans, including the development of a Wondermind app and securing celebrity endorsements. Investors poured nearly $1.2 million into the startup, but the founders allegedly failed to deliver on their promises.
The lawsuit also alleges that Pierson used investor funds for personal expenses, including a $60,000 monthly rent for her New York City apartment. Teefey allegedly told investors that Pierson had misappropriated funds, but this was only revealed after a Forbes article exposed the company’s financial issues.
Response from Pierson
Pierson has denied the allegations, stating that she welcomes the opportunity to present concrete documentation and financial records to establish the facts. She claims that she invested her own money into the business and did not draw a salary from the company.
The lawsuit accuses Wondermind and its founders of securities fraud, common-law fraud, and breach of contract. The investors are seeking rescission of their investment contract and damages.
Original reporting: NBC4 Los Angeles — read the source article.
