Selena Gomez and her mother Mandy Teefey have been sued for fraud by investors who poured $1.2 million into mental health startup Wondermind.
The lawsuit, filed by investment entities Wondermind SRS 44, LLC and Bespoke Wondermind SPV I, LLC, accuses Gomez, Teefey, co-founder Daniella Pierson, and Wondermind Global Inc. of falsely representing the company as a thriving business while it was "in the midst of collapse."
In court documents obtained by The Daily Mail, the plaintiffs claim they were left in the dark about internal disarray for more than three years before public reports exposed the financial crisis. The investors are seeking a jury trial, rescission of their investments, return of investment funds, damages, costs, and attorney's fees.
Representatives for Gomez and Teefey were contacted by The Daily Mail for comment regarding the lawsuit but have yet to respond.
Allegations of Misrepresentation and Broken Promises
According to the lawsuit, the defendants "falsely represented that the Company had the infrastructure, leadership, and resources necessary for the Company to launch into a profitable, one-of-its-kind mental health and wellness platform." Plaintiffs state that the individual defendants directly solicited their investments using three key misrepresentations.
First, investors were told that Gomez, described in filings as "one of the most famous women on earth with a billion-dollar brand and a platform unmatched in social media," would actively build the company as its head of marketing and Chief Impact Officer. The claim alleges that Gomez "purported to sign a contract obligating her to perform" only to ignore it.
Second, plaintiffs were told co-CEO Daniella Pierson was a "$200 million executive whose prior businesses generated $40 million a year" and had secured institutional employer partnerships with JPMorgan and Fidelity. The lawsuit alleges Pierson knew her claims regarding newsletter company The Newsette generating $40 million in yearly revenue and having a valuation of approximately $200 million were false, while the institutional partnerships "did not exist."
Third, founders promised that a full slate of revenue-generating initiatives was already underway, including advertising deals, celebrity cover stories, and a groundbreaking app. The lawsuit alleges that "the initiatives never materialized" and "the app was never built."
Undisclosed Personal Disputes and Substance Abuse Allegations
The lawsuit further claims that defendants were aware of "long-running, undisclosed personal disputes" between Teefey and Gomez that would make Gomez's intimate involvement in the company "impracticable."
In addition, the complaint accuses defendants of misrepresenting Teefey's fitness to serve as an officer and director, alleging "defendants knew that Teefey had substance abuse issues that diminished her capacity to administer the Company, and when the Defendants knew that Teefey was otherwise unfit to manage the Company."
The plaintiffs allege they were kept unaware of the internal problems because of defendants' attempts to conceal their conduct and lull investors. "And 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," the claim states.
Behind the Scenes Disarray at Mental Health Platform
Wondermind was founded in 2021 by Gomez, Teefey, and Pierson, inspired by the founders' respective mental health struggles. The company was hit by controversy in May 2025 following an exposé by The Cut revealing the platform was in financial crisis and had laid off 60 per cent of its employees.
The Cut report cited anonymous employees who accused CEO Teefey of erratic behavior, including "hallucinating" a break-in, sleeping at the office for days, and receiving injections of liquid Benadryl that she allegedly claimed were vitamin IV drips. One employee called her office a "drug den," while another claimed to be present when she snorted "what they believe was a line of Ritalin," an ADHD medication.
Teefey denied the allegations to the publication, stating she did "absolutely not" snort Ritalin. In a statement, Teefey said: "I started Wondermind because I wanted to help people with mental illness. It's unfortunate that a few disgruntled employees with an ax to grind can spread lies about me and distort the truth."
Attempts to Lull Investors and Email Communications
Following The Cut report, plaintiffs sent a notice of rescission requesting their funds back. However, the lawsuit claims defendants acted to "lull and mislead the Plaintiffs," with Teefey claiming in an email that Wondermind was "now on track to release products in the first quarter to straight profit." She also downplayed "the accusations of my misconduct and financial disarray" and promised to respond in 10 days, but "never substantively responded to the notice."
On April 8, 2026, Andrew Resnick of Bespoke Wondermind LLC asked Teefey for updates on the company. Teefey replied: "Hi Andrew - I guess I am confused. I thought we returned your investment along with the other investors you came in with. So, I am confused about owing you updates. Please advise." Wondermind had returned no funds to Resnick or any other plaintiffs.
When Resnick asked which investors had been paid back, Teefey replied: "That would be a question for Selena's legal team. I am not sure I am at liberty to give that info out, but I will touch base with them so they can reach out to you. I'll connect you once they respond." No representative from Gomez's legal team ever contacted the plaintiffs.
The following day, Teefey emailed Resnick referring to an unidentified lawsuit and negotiations, writing: "I just forwarded this to PJ Shapiro and Thomas Kingsley. Our lawyers were not handling but we did answer the lawsuit and I know negotiations have been happening. So, please do not need anymore threats on lawsuits that should be towards our co founder Daniella since all allegations were her actions. Thank you for your understanding and trust we have and will co to use [sic] take this seriously."
Legal Claims and Current Company Status
The plaintiffs are bringing claims for "securities fraud under Rule 10b-5 of the Securities Exchange Act of 1934, common law fraud, and breach of contract, among other claims," seeking rescission, damages, costs, and attorney's fees.
Pierson departed Wondermind in 2023. The Wondermind website currently features articles on combatting loneliness, rumination, and setting boundaries, alongside celebrity interviews and an advisory board of mental health professionals. Teefey remains listed as co-founder and CEO, and Gomez as co-founder. Earlier in 2026, Wondermind was also sued by its former landlord in New York City over $813,027.18 in back-rent.
Gomez, an acclaimed pop star and Emmy-nominated actress who stars in Only Murders in the Building and founded cosmetics brand Rare Beauty, launched Wondermind as a media platform focused on mental fitness.
