Selena Gomez, Mandy Teefey and former Wondermind partner Daniella Pierson are facing a federal lawsuit from investors who allege they were misled about the startup’s finances, leadership and prospects.
NEW YORK: Selena Gomez is facing a federal fraud lawsuit after investors accused the mental health startup Wondermind, which she co-founded with her mother Mandy Teefey and entrepreneur Daniella Pierson, of misleading them before they invested nearly $1.2 million.
The lawsuit, filed in federal court in Delaware, names Gomez, Teefey, Pierson and Wondermind Global Inc. The investors are seeking to recover their money and other damages and have requested a jury trial. The allegations have not been proven in court.
Wondermind was launched in 2021 as a mental health and wellness platform. Gomez was closely associated with the company and was presented as an important part of its marketing strategy. According to the lawsuit, investors believed the startup had the leadership, infrastructure and partnerships necessary to build a successful business.
The plaintiffs now claim that the reality was substantially different. They allege that several proposed business opportunities failed to materialize, that Gomez did not fulfill certain promotional obligations and that a planned mobile application was never developed. They also argue that the company’s financial and operational problems were not adequately disclosed when they made their investments.
The legal dispute follows serious financial difficulties at Wondermind that became public in 2025. Forbes reported that the company struggled to pay employees, freelancers and vendors and later laid off nine of its approximately 15 employees, representing about 60% of its workforce.
The lawsuit also refers to reporting about internal problems at Wondermind. Former employees had previously raised allegations about Teefey’s management and the company’s working environment. Teefey has denied allegations concerning her conduct, while Wondermind disputed some of the criticism surrounding Gomez’s involvement.
Wondermind had initially generated substantial interest. In 2022, the company reportedly raised $5 million in a Series A funding round at a valuation of about $100 million, highlighting the confidence surrounding its founders and business model at the time.
The latest lawsuit could now bring greater scrutiny to the responsibilities of celebrity-backed startups and the disclosures made to investors. For Gomez and the other defendants, the central issue will be whether the claims made to investors amounted to actionable misrepresentations under the law.
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