Selena Gomez, her mother Mandy Teefey, and former business partner Daniella Pierson are facing a federal lawsuit from investors who say they were misled about the prospects of their mental health startup Wondermind.
The lawsuit was filed by investors who put nearly $1.2 million into Wondermind in 2022. They allege the founders exaggerated the company’s infrastructure, leadership, partnerships and ability to become profitable.
Among the allegations, investors say they were told that Gomez would actively help build the company as its head of marketing, that partnerships with JPMorgan and Fidelity had been secured, and that several revenue-generating projects were already underway. The lawsuit claims those partnerships and initiatives never materialised.
Wondermind was launched in 2021 as a mental fitness and wellness platform. The company raised $5 million in 2022 at a reported valuation of around $100 million, but later ran into financial and operational difficulties.
The investors claim they were kept unaware of the extent of the problems for years and only learned about the company’s internal turmoil through media reports in 2025. The lawsuit includes allegations of securities fraud, breach of contract and unjust enrichment.
The allegations have not been proven in court. Representatives for the defendants had not publicly responded to requests for comment in the reports reviewed.
