Selena Gomez, her mother Mandy Teefey, and former business partner Daniella Pierson are facing a lawsuit from investors who claim they were misled about the mental health startup Wondermind. The legal action, filed on August 13, 2026, in federal court in Delaware, accuses the trio of fraud and breach of contract.
The investors claim they put nearly $1.2 million into Wondermind in 2022. They expected Gomez to use her massive social media following and celebrity status to grow the business. Instead, they allege the company failed to deliver on its promises, including building a mobile app and securing major partnerships.
Lawsuit Alleges Investors Were Misled About Company’s True State
The complaint, filed by Wondermind SRS 44 LLC and Bespoke Wondermind SPV I LLC, accuses the founders of falsely representing the company’s infrastructure, leadership, and resources. The investors say they were told Wondermind had a $95 million valuation in 2022 and would secure partnerships with companies like JPMorgan, along with advertising deals and a “groundbreaking” app.
The lawsuit states: “The partnerships did not exist. The initiatives never materialized. The app was never built”.
According to the complaint, Gomez was listed as co-founder, chief impact officer, and head of marketing. Investors believed she would be actively involved in building the company. However, the lawsuit alleges she “purported to sign a contract obligating her to perform and then ignored it”.
Investors Say They Were Kept in the Dark for Three Years
The plaintiffs claim they were not informed about Wondermind’s financial and operational troubles for about three years. The lawsuit states: “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 investors say they only learned about the company’s problems after The Cut published an exposé in September 2025 describing Wondermind as being in a “state of utter disarray”. The article reportedly detailed internal power struggles, relationship conflicts, and alleged substance abuse issues involving Teefey.
The lawsuit also cites a Forbes investigation from August 2025 that questioned Pierson’s claims about her previous business achievements.
Mother and Former Business Partner Also Named in Lawsuit
Along with Gomez, the lawsuit names Mandy Teefey, who served as Wondermind’s co-chief executive officer, and Daniella Pierson, a former business partner. Gomez, Teefey, and Pierson collectively owned almost 90% of the company’s shares, according to the lawsuit.
The suit alleges that Teefey told investors Pierson had used investor funds to pay her New York City rent, which came to approximately $60,000 a month. Pierson left Wondermind in 2023.
In a statement on Thursday, Pierson denied the allegations, saying she “welcomes the opportunity to present concrete documentation and financial records that establish the facts”. She also said she never used investor funds for personal expenses.
Gomez, Teefey, and Wondermind did not immediately respond to requests for comment.
Related:
What Wondermind Was Supposed to Be
Wondermind launched in November 2021 as a mental health-focused media platform. The company’s website described it as offering “easy, doable ways to put your mental fitness first every day”. The platform was designed to help users strengthen their “mental fitness” through digital content and wellness resources.
The investors claim they were told the company would launch a dedicated app, a podcast, an editorial publication, and other wellness products. None of these initiatives were completed, according to the lawsuit.
The plaintiffs are seeking to recoup their investments as well as damages and attorney’s fees. The allegations made in the lawsuit have not been proven in court.
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