Selena Gomez and her mother, Mandy Teefey, have been accused by several investors in their mental health startup Wondermind of misleading them about the company’s success and Gomez’s involvement.
Five investors alleged in a lawsuit that they invested nearly $1.2 million in 2022, hoping that the global pop star would use her star power and massive social media following to help grow the startup. When Wondermind was launched in 2021, Gomez was listed as a co-founder and Head of Marketing.
“Instead for three years, while the company quietly collapsed around them, not one of its
founders, officer or director said a word to the investor, whose money was funding the collapse,” the lawsuit read.
Gomez’s mother, Mandy Teefey, who is the co-chief executive officer at Wondermind, and former business partner Daniella Pierson, are being sued over allegations including securities fraud, common-law fraud and breach of contract.
What the investors have alleged
According to the lawsuit, Wondermind was valued at around $95 million in 2022, which allegedly led investors to believe there would be corporate partnerships with companies such as JPMorgan, along with “advertising deals, celebrity cover stories, and a groundbreaking app.”
Gomez, Teefey and Pierson collectively owned almost 90% of the company, the investors
alleged. “The partnership did not exist. The initiatives never materialised. The app was never built,” the investors claimed further.
The investors also cited a September 2025 article in The Cut, which detailed allegations of
company mismanagement and substance abuse involving Gomez’s mother, Mandy Teefey, as well as Gomez’s apparent efforts to distance herself from the company amid an alleged rift with her mother. These are allegations and have not been established in court.
The investors further alleged that Teefey told them Pierson had used investor funds to help pay her rent in New York, which they claimed amounted to approximately $60,000 a month. Pierson left the startup in 2023.
In a statement released on Thursday, Pierson denied the allegations and said she welcomed
the opportunity to present concrete documentation and financial records that establish the facts. The lawsuit seeks to recover the investors’ money, along with damages and legal fees.
(Edited by Aakriti Handa)