Investors sue Selena Gomez's Wondermind over alleged fraud and misrepresentation

Investors have filed a lawsuit against pop star Selena Gomez and her mental-health startup Wondermind, alleging they were deceived about the company’s success and Gomez’s involvement. The suit says five investors contributed about $1.2 million in 2022, relying on Gomez’s reputation to grow the platform, which was promoted as a daily mental-fitness resource.

According to the complaint, Wondermind’s valuation was claimed to be $95 million in 2022, with promises of corporate partnerships, advertising deals and a forthcoming app that never materialized. The investors allege the company collapsed quietly over three years while its founders, officers and directors failed to inform them of the downturn.

The lawsuit also names Gomez’s mother, Mandy Teefey, who served as co-CEO, and former business partner Daniella Pierson, accusing them of securities fraud, common-law fraud, breach of contract and other claims. Plaintiffs seek repayment of their investments, damages and attorney’s fees.

"The partnerships did not exist. The initiatives never materialized. The app was never built," the investors wrote.

The complaint references a 2023 article in The Cut that reported internal power struggles at Wondermind and suggested Gomez did not meet contractual obligations due to personal issues with her mother. The filing states Gomez, Teefey and Pierson collectively owned nearly 90 % of the company’s shares.

Teefey allegedly told investors that Pierson used company funds to cover personal rent expenses of about $60,000 a month. Pierson, who left Wondermind in 2023, denied the allegations and said she would provide documentation to refute the claims. Gomez, Teefey and Wondermind have not responded to requests for comment.