Selena Gomez and mother sued for $1.2M fraud in mental health startup collapse

Selena Gomez and her mother, Mandy Teefey, are facing a federal lawsuit in Delaware alleging they defrauded investors of nearly $1.2 million in their mental health startup, Wondermind, through false promises about the company's infrastructure, leadership, and resources.

The lawsuit was filed by two investment entities, Wondermind SRS 44 LLC and Bespoke Wondermind SPV I LLC, and names Gomez, Teefey, and co-founder Daniella Pierson as defendants. The complaint accuses the trio of securities fraud, common law fraud, and breach of contract.

What investors claim they were promised

Wondermind was launched in 2021 by Gomez, Teefey, and Pierson with the stated goal of making mental health tools more accessible through digital content and wellness resources. According to the lawsuit, investors were told the company would develop a dedicated Wondermind app, secure major advertising partnerships, and feature celebrity cover stories to drive growth. The investors believed Gomez's involvement and fan base were central to the company's value, and the lawsuit alleges she promised to be "intimately involved" in the business.

None of these initiatives came to completion, the complaint states. Instead, investors claim they received limited updates and communications that painted an overly optimistic picture of Wondermind's financial health and operations.

The silence during collapse

The lawsuit alleges that "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." Investors claim they did not learn about Wondermind's deteriorating condition until September 2025, when The Cut published an article describing the company as being in a "state of utter disarray."

The complaint also alleges that Gomez signed a contract obligating her to perform work for the company but then ignored it. Pierson faces additional allegations of making misstatements about her past business successes and projected returns on investment, as well as claims of conversion and unjust enrichment.

Response and legal action

Mandy Teefey denied substance abuse allegations and claimed the company was not in disarray. Representatives for Wondermind, Gomez, Teefey, and Pierson did not immediately respond to requests for comment.

The investors are seeking rescission of their $1.2 million investment, along with damages and legal costs.