2 weeks ago

Selena Gomez, Mother Mandy Teefey Sued Over Wondermind Fraud

Selena Gomez, Mother Mandy Teefey Sued Over Wondermind Fraud
Selena Gomez Faces Lawsuit Over Wondermind Investor Claims · easterneye.biz

Selena Gomez is a very famous singer and actress.

She and her mother, Mandy Teefey, started a company called Wondermind.

Wondermind was supposed to help people take care of their mental health, a little like a gym helps people stay physically fit.

Some investors gave Wondermind almost $1.2 million to help the company grow.

The investors say Selena promised to use her huge fan following to promote the company, but they say she did not do the work she agreed to.

They also say the company never built the app it promised and sometimes did not pay its workers on time.

Now those investors are suing Selena, her mom, and another business partner named Daniella Pierson.

Mandy says the investors are listening to lies from unhappy former employees, and Daniella says she never spent investor money on herself.

Selena has not said anything about the lawsuit yet.

A judge will have to decide who is telling the truth.

Key facts

Company
Wondermind Global, a mental-health startup launched in 2021
Plaintiffs
Wondermind SRS 44 LLC and Bespoke Wondermind LLC, on behalf of five investors
Investment at stake
Nearly $1.2 million (around £890,000)
2022 funding round
$5 million raised at a reported $95 million valuation; backers included Serena Williams's venture fund, Lightspeed Venture Partners and Sequoia Capital
Leadership roles
Gomez was co-founder, chief impact officer and head of marketing; Teefey was co-CEO
Ownership
Gomez, Teefey and Pierson collectively held nearly 90% of the company's shares
Notable investor
Bausch + Lomb chief executive Brent Saunders; investors based in New York and Florida
Legal claims
Securities fraud, common law fraud and breach of contract; suit filed in federal court in Delaware

Quotes

Mandy Teefey

Mother of Selena Gomez and former Wondermind Global executive

“We want to keep the conversation just like real talk and relatable to everyone. "We are three founders living with mental illness, we don't have the answers. So I feel like we're going to be together in the process, not talking down, we will be talking together."”
livemint.com
“"It's unfortunate that a few disgruntled employees with an ax to grind can spread lies about me and distort the truth. Even more disappointing that the media is willing to amplify their lies."”
deccanchronicle.com republicworld.com livemint.com

Anonymous lawsuit claim

Statement from the lawsuit filed by Wondermind SRS 44 LLC and Bespoke Wondermind LLC

“"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."”
deccanchronicle.com
“The claim alleges that a “full slate” of advertising deals, celebrity cover stories, an app and other initiatives were underway.”
easterneye.biz

Sources

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