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Selena Gomez\u2019s attorneys filed a motion Wednesday to dismiss a securities fraud lawsuit brought by investors in her mental health startup, Wondermind, calling the allegations<\/a> \u201cabsurd\u201d and raising the threat of court-ordered sanctions against the investors.<\/p>\n US actress Selena Gomez attends the Netflix premiere of “Marty, Life is Short” at The Egyptian Theater in Los Angeles on May 6, 2026.<\/p>\n Photo by LISA O’CONNOR \/ AFP via Getty ImagesKey Facts<\/p>\n The filing<\/a> 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.<\/p>\n Attorneys for Gomez said the allegations \u201care so egregiously improper and legally deficient that they raise the specter of Rule 11 sanctions against Plaintiffs,\u201d meaning if granted, the court could punish the investors\u2019 lawyers.<\/p>\n The limited liability companies that invested in Gomez\u2019s 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\u2019s mother, Mandy Teefey\u2014meetings Gomez was not directly involved in.<\/p>\n Investors also alleged Wondermind falsely claimed Gomez would be \u201cintimately involved\u201d in the company\u2019s operations and marketing.<\/p>\n Gomez\u2019s attorneys argue the lawsuit\u2019s 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.<\/p>\n Crucial Quote<\/p>\n \u201cPlaintiffs 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,\u201d Gomez\u2019s attorneys wrote.<\/p>\n Key Background<\/p>\n The lawsuit against Gomez, Pierson and Teefey was filed Aug. 13 and accused the defendants of misrepresenting the company\u2019s finances, overstating Gomez\u2019s future involvement with the company and misrepresenting Teefey\u2019s fitness, the latter claim of which was linked to a 2025 article<\/a> 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<\/a> reported. A separate Forbes report also found Wondermind slashed its workforce<\/a> by nearly two-thirds as it dealt with crushing debt.<\/p>\n Further Reading<\/p>\n Selena Gomez\u2019s Struggling Mental Health Startup Lays Off Nearly Two-Thirds Of Its Employees <\/a>(Forbes)<\/p>\n