Selena Gomez and her mother, Mandy Teefey, have been sued by investors who allege they were misled into putting nearly $1.2 million (£889,020) into Wondermind, the mental health company they co-founded with Daniella Pierson.
The Delaware federal lawsuit accuses Gomez, Teefey, Pierson and Wondermind Global of securities fraud, common-law fraud and breach of contract. The investors claim they were given misleading information about the company's leadership, partnerships, revenue plans and prospects before investing. The allegations have not been proven in court. The complaint names all four defendants in court.
Who Are the Investors Suing Selena Gomez?
The plaintiffs are two investment entities representing five individuals: Wondermind SRS 44 LLC, whose members are Brent Saunders, Marc Roberts and EJ Solimine, and Bespoke Wondermind SPV I LLC, whose members are Andrew Resnick and Mark Peikin.
The complaint says the investors put nearly $1.2 million (£889,020) into Wondermind in September 2022. They allege they invested after being told Gomez would be actively building the company as its head of marketing and using her substantial social-media following to promote it.
The complaint also alleges Pierson was presented as a highly successful executive who had secured institutional partnerships with JPMorgan and Fidelity. The investors claim those representations were false.
What Do Investors Allege About Wondermind?
The investors allege Gomez signed a contract requiring her to perform marketing duties but later failed to fulfil them. They claim planned initiatives, including advertising deals, celebrity cover stories and a mobile app, never materialised.
The complaint states: 'The partnerships did not exist. The initiatives never materialized. The app was never built.'
The investors further allege Wondermind's financial and operational problems were concealed from them for years. They say they only discovered the extent of the company's troubles after a September 2025 report detailed internal turmoil.
That reporting came after Wondermind had already raised $5 million (£3.71 million) at a reported valuation approaching $100 million (£74.14 million). The company later faced difficulties paying employees, freelancers and vendors.
The investors say they sent a notice seeking to rescind their investments in November 2025 after learning more about the company's condition, but claim their attempts to recover the money were unsuccessful.
What Did Mandy Teefey Say?
The lawsuit also contains allegations about Teefey's management of Wondermind and claims concerning alleged substance use.
Teefey has denied the substance-abuse allegations and rejected claims that Wondermind was a mess. She said it was unfortunate that 'a few disgruntled employees with an axe to grind can spread lies about me and distort the truth,' adding that she was disappointed the media was willing to amplify what she called lies.
The TikTok commentary surrounding the lawsuit also said the allegations concerning Teefey's alleged substance use 'need to be cleared up.' Another creator described Wondermind as 'secretly crumbling from within' while discussing the claims.
Reuters reported that a representative for Selena Gomez did not immediately respond to a request for comment.
What Happens Next?
The investors are seeking rescission of their investments, damages, costs and other relief, and have demanded a jury trial.
For now, the lawsuit places Gomez's role in Wondermind under renewed scrutiny. The case will determine whether the representations made to the investors were false and whether the defendants are legally responsible for their alleged losses.
