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Five investors said they put nearly $1.2 million into Wondermind in 2022, according to a lawsuit filed in federal court in Delaware.
Selena Gomez also spoke about how complicated it can be to find the right support for her mental health disorder. (Photo Credit: Instagram)
Investors in Selena Gomez’s mental health startup Wondermind have sued the actor-singer, alleging they were misled about the company’s prospects and Gomez’s involvement in building and promoting the business.
Five investors said they put nearly $1.2 million into Wondermind in 2022, according to a lawsuit filed in federal court in Delaware on Thursday. They are seeking to recover their investments, damages and legal fees.
The lawsuit names Gomez, her mother and Wondermind co-chief executive Mandy Teefey, former business partner Daniella Pierson and the company as defendants.
Investors Allege Promises Were Broken
Wondermind was launched in 2021 as a platform aimed at helping users improve their “mental fitness”. Gomez was listed as a co-founder, chief impact officer and head of marketing.
The investors said they were told Gomez would use her celebrity profile and social media following to help build the company. They allege she failed to fulfil contractual duties, including helping develop and promote the business.
The lawsuit also alleges that investors were led to believe Wondermind had a $95 million valuation and would secure major corporate partnerships, advertising deals and a mobile app.
“The partnerships did not exist. The initiatives never materialised. The app was never built,” the investors alleged.
They further claimed the company failed to meet basic obligations, including paying employees and vendors on time.
Investors Say Company Quietly Collapsed
The investors said they were not told about the company’s financial and operational problems for years, despite their money being used to fund the business.
They said they learnt about Wondermind’s troubles after a report by The Cut in September 2025 detailed internal disputes and problems within the company.
The lawsuit also cites claims involving Pierson, who left Wondermind in 2023. Investors allege that Teefey told them Pierson had used company funds to help pay her rent in New York.
Pierson Denies Allegations
Pierson, who is also named as a defendant, denied the allegations and said she would provide documentation and financial records to establish the facts. She also denied using investor money for personal expenses.
Gomez, Teefey and Wondermind did not immediately respond to requests for comment.
The lawsuit accuses the defendants of securities fraud, common law fraud and breach of contract, among other claims. The allegations have not been established in court.
(With inputs from agencies)
Key Questions Answered
Ask News18Wondermind is currently facing a lawsuit filed by five investors who claim they were misled about the company’s prospects and Selena Gomez’s involvement. The lawsuit, filed in federal court in Delaware, names Gomez, her mother Mandy Teefey, former business partner Daniella Pierson, and the company as defendants.
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