Selena Gomez Denies Fraud Allegations as Wondermind Lawsuit Escalates

Selena Gomez is pushing back against allegations that she defrauded investors in Wondermind, with her attorney saying the singer plans to ask a federal court to dismiss the claims against her.

Attorney Mathew S. Rosengart said Saturday that allegations Gomez participated in fraud or other wrongdoing are “completely meritless, both factually and legally.” He said Gomez would “vigorously defend” herself and that her legal team is preparing a motion to dismiss the claims.

The response comes days after two investment entities sued Gomez, her mother Mandy Teefey, entrepreneur Daniella Pierson and Wondermind Global Inc. in federal court in Delaware. The investors accuse the company and its co-founders of misleading them about Wondermind’s financial condition, operations and business prospects after they invested nearly $1.2 million in the mental health company.

Among the claims against Gomez are securities fraud, common law fraud and breach of contract. The complaint alleges investors were given an overly positive picture of Wondermind while financial and leadership problems were developing within the company. Gomez is also accused of being less involved in the business than investors allegedly had been led to expect.

Rosengart rejected any suggestion that Gomez knowingly participated in misleading investors. His planned motion to dismiss would allow her attorneys to challenge the legal sufficiency of the allegations before the case moves further into litigation.

At that stage, the judge generally does not decide whether the investors can ultimately prove their accusations. A motion to dismiss instead asks whether the complaint alleges enough facts to support legally viable claims against the person seeking dismissal.

That distinction could be significant for Gomez because the lawsuit names the company and several individuals while attributing different conduct to each of them. Her attorneys can challenge whether the allegations concerning Wondermind or the actions of other executives sufficiently connect Gomez herself to the conduct required for the fraud claims against her.

Fraud claims generally require more than showing that an investment lost value or that a company failed to meet expectations. Investors pursuing securities fraud claims must establish, among other elements, that material information was falsely presented or withheld with the required wrongful intent and that they relied on those representations when making their investment.

Pierson has separately denied wrongdoing, including allegations that she improperly used investor funds for personal expenses.

The investors are seeking to rescind their investments, which would unwind the transactions through which they put money into Wondermind, along with damages and other relief. Gomez has not yet filed the expected motion to dismiss, and the court has not ruled on the merits of the claims against her.