Selena Gomez is contesting allegations that she defrauded investors in the mental health startup Wondermind. The lawsuit, filed two weeks ago, accuses Gomez, her mother Mandy Teefey, and co-founder Daniella Pierson of misleading investors about the company's infrastructure and leadership. Investors claim they lost $1.2 million due to false promises made by the founders.

Gomez's legal team, led by attorney Mathew S. Rosengart, filed a motion on Wednesday (August 26) to dismiss her from the lawsuit. Rosengart stated that the claims against Gomez are "completely meritless if not frivolous," emphasizing that Gomez had no role in managing Wondermind or its fundraising activities. According to Rolling Stone, Gomez was only a consultant and held the title of Chief Impact Officer, while Teefey and Pierson managed the company as co-CEOs.

The lawsuit alleges that investors were misled about the development of a Wondermind app, advertising deals, and celebrity cover stories. It claims that the company concealed its financial struggles for over three years. However, Gomez's lawyers argue that she was not involved in these communications and did not engage in any fraudulent activity.

In response to the lawsuit, Rosengart is exploring additional legal avenues, including potential sanctions against the plaintiffs for improperly involving Gomez. Billboard reports that Gomez's legal team is determined to have her dismissed from the case, asserting that she should never have been included.

The lawsuit also highlights alleged mismanagement by Teefey, including erratic behavior and substance abuse issues, as detailed in a Cut article. Despite these allegations, Teefey maintains that Wondermind remains a viable enterprise.

The investors are seeking to recover their $1.2 million investment and additional damages. Gomez's legal team continues to defend her against the claims, which they describe as baseless.