Singer and actor Selena Gomez, her mother Mandy Teefey and former business partner Daniella Pierson are facing a lawsuit from investors who allege they were misled about the financial health, operations and prospects of mental health startup Wondermind.
The lawsuit, filed in federal court in Delaware on Thursday, claims investors put nearly $1.2 million into Wondermind in 2022 after being given assurances about Gomez’s involvement and the company’s growth plans. The plaintiffs are pursuing claims including securities fraud, common law fraud and breach of contract, and are seeking to recover their investment along with damages and legal fees.
Wondermind was launched in 2021 by Gomez, Teefey and Pierson as a platform focused on mental health and “mental fitness”. According to the lawsuit, Gomez was presented as a co-founder, chief impact officer and head of marketing. Investors allege they expected her to use her large social media following to help develop and promote the business.
The plaintiffs claim those expectations were not met. They allege that initiatives discussed with investors, including a mobile application, corporate partnerships, advertising arrangements and other promotional opportunities, did not materialise. The lawsuit also alleges that the company struggled with basic operational obligations, including payments to employees and vendors.
CNN reported that investors were told Wondermind had a valuation of $95 million in 2022 and were allegedly led to expect partnerships with companies including JPMorgan, along with advertising deals, celebrity cover stories and an app. The investors say they were not informed about the company’s deteriorating position.
The plaintiffs further allege that they only became aware of the extent of Wondermind’s problems after a September 2025 report by The Cut. According to the lawsuit, the investors say the company had been deteriorating for years without its founders, officers or directors properly informing them.
The complaint also names Teefey and Pierson. Teefey allegedly told investors that Pierson had used company funds to help cover rent in New York, estimated in the complaint at about $60,000 a month. Pierson left Wondermind in 2023.
Reuters reported that the investors specifically accuse Gomez of failing to fulfil contractual responsibilities connected to her role as head of marketing. The lawsuit alleges that she agreed to obligations but did not carry them out.
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