Selena Gomez and her mother, Mandy Teefey, are facing a lawsuit from investors in Wondermind, the mental health company they co-founded with entrepreneur Daniella Pierson.
Two investor groups filed a lawsuit in federal court in Delaware on Thursday, August 13, naming Gomez, Teefey, Pierson and Wondermind Global as defendants.
© GettyImagesAccording to court documents cited by multiple outlets, the plaintiffs claim they invested nearly $1.2 million in Wondermind in September 2022 after allegedly receiving misleading information about the company's infrastructure, leadership, resources and prospects. The allegations have not been proven in court.
Selena Gomez's role at the center of the lawsuit:
One of the investors' claims specifically concerns Gomez's expected involvement in the company.
According to the complaint, investors were allegedly told that the singer and actress would be "actively building the company" and using her enormous public platform to help promote Wondermind.
© Getty ImagesThe lawsuit alleges Gomez had agreed to help build the company as its head of marketing through social media, advertising partnerships and television appearances, but claims she did not fulfill those responsibilities.
"The partnerships did not exist. The initiatives never materialized. The app was never built," the plaintiffs allege in the complaint.
The investors further claim that Wondermind's founders failed to disclose the extent of the company's alleged financial and operational problems.
© WireImage"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 complaint alleges.
Investors say they discovered problems through a media report:
According to the lawsuit, the investors say they did not become aware of the extent of Wondermind's alleged problems until The Cut published an investigation into the company in September 2025.
That report detailed accounts from former employees about financial problems and internal turmoil at the company. It also included allegations concerning Teefey's behavior and alleged substance use, which she strongly denied.
© Allen Berezovsky"I started Wondermind because I wanted to help people with mental illness," Teefey said in a statement responding to the allegations at the time. "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."
The plaintiffs say The Cut report alerted them to allegations surrounding Teefey's management, Gomez's distance from the company, tensions involving Pierson and problems paying employees and vendors.
© GettyPierson left the company in January 2023 following what has been described as an internal dispute with Teefey.
The investors tried to get their money back:
The plaintiffs say they formally sought to rescind their investments in November 2025.
According to the complaint, Teefey initially said she would respond but allegedly did not provide a substantive answer.
© Astrid StawiarzMonths later, in April 2026, Teefey allegedly told investor Andrew Resnick, "I thought we returned your investment along with the other investors you came in with."
After Resnick reportedly told her he had not received the money, Teefey allegedly responded that the matter was "a question for Selena's legal team."
© Leon BennettThe lawsuit further alleges that Teefey later said an escrow account had been created to help return the investors' money. The plaintiffs claim they repeatedly requested information about the account but ultimately concluded that no such account existed.
Celebrity names allegedly appeared in investor materials:
Another striking allegation concerns the celebrity names reportedly used in Wondermind's pitch materials.
According to reporting on the complaint, investors claim they were told there was "interest or confirmation" surrounding potential cover stories involving stars and public figures including Camila Cabello, Elton John, Drake, Megan Thee Stallion and Apple CEO Tim Cook.
© GC ImagesThe investors allege those plans ultimately failed to materialize. The lawsuit also points to alleged personal tensions between Gomez and her mother, claiming that undisclosed disputes between them contributed to Gomez distancing herself from Wondermind. Those assertions are allegations made by the plaintiffs and have not been independently established.
Wondermind previously faced financial trouble:
Gomez, Teefey and Pierson co-founded Wondermind in 2021, and the mental health platform launched in 2022.
The company's financial difficulties became public in 2025. Forbes reported that Wondermind laid off nearly two-thirds of its approximately 15-person staff amid reports that employees had gone weeks without being paid and that money was owed to freelancers and vendors.
© Kevin Mazur/Getty ImagesAt the time, a Wondermind spokesperson said the company had "rectified" its outstanding financial issues and described the situation as part of the company's "growing pains."
The new lawsuit includes claims of securities fraud, fraud and breach of contract. The plaintiffs are seeking, among other relief, the return of their investments, damages, costs and attorneys' fees and have requested a jury trial. As of Thursday, Gomez had not publicly addressed the lawsuit.
