Selena Gomez, her mother Mandy Teefey, and their former business partner Daniella Pierson were sued Thursday by investors in Wondermind, the pop star’s mental health startup, who claim they were misled into putting roughly $1.2 million into a company that was “quietly” collapsing around its founders. The suit, filed in a Delaware federal court according to Yahoo, names Wondermind Global itself as a defendant alongside the three women and accuses them of securities fraud, among other claims. The investors want their money back — plus damages and attorney’s fees — and are asking for a jury trial.
Key Takeaways
- Investors who say they put roughly $1.2 million into Wondermind in 2022 are suing Selena Gomez, her mother Mandy Teefey, co-founder Daniella Pierson and the company for securities fraud in Delaware federal court.
- The complaint alleges promised partnerships with companies like JPMorgan, advertising deals and an app — and says flatly that "the app was never built."
- The suit leans heavily on a September 2025 story in The Cut that described Wondermind in a "state of utter disarray."
- None of the allegations have been proven: Pierson denies them, Teefey has previously denied the claims about her, and Gomez has not commented.
A mental health empire, on paper
Wondermind was pitched as something genuinely new. According to Yahoo, the founders set out to offer the “world’s first mental fitness ecosystem to democratise and destigmatise mental health for everyone.” CNN reported that Gomez was listed as co-founder, “chief impact officer,” and head of marketing, and that the media platform was designed to give users “easy, doable ways to put your mental fitness first every day,” per its website.
The sources differ slightly on the timeline: CNN reported that Wondermind launched in 2021, while Yahoo said Gomez, Teefey, and Pierson founded the company in 2022. Either way, by 2022 the company was telling investors it was worth $95 million, according to the lawsuit as reported by CNN.
That was the pitch. The lawsuit says the reality was very different.
What investors say they were promised
According to CNN, five investors said in the lawsuit that they put in $1.2 million in 2022, expecting Gomez to leverage her star power and massive social media following to build the company up. TMZ, which obtained the lawsuit, reported that the plaintiff entities are two companies — Wondermind SRS 44 LLC and Bespoke Wondermind LLC — and that they invested over $1 million based in part on Gomez making the rounds on TV shows and talking up the business in interviews.
The complaint alleges the founders “falsely represented that the Company had the infrastructure, leadership, and resources necessary for the Company to launch into a profitable, one-of-its-kind mental health and wellness platform,” according to Yahoo.
The promises were specific, per CNN’s account of the suit: investors were allegedly led to believe there would be corporate partnerships with companies like JPMorgan, plus “advertising deals, celebrity cover stories, and a groundbreaking app.” The investors’ verdict on all of it is blunt. “The partnerships did not exist. The initiatives never materialized. The app was never built,” they alleged, according to CNN.
The suit also goes after each founder individually. TMZ reported that the investors claim Gomez made it appear she was heavily involved in Wondermind but “didn’t do much of anything” after the money came in, and that Pierson allegedly misrepresented her past business successes and the returns investors would see.
Three years of silence — then an expose
The line that anchors the whole complaint appears in multiple reports. “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 lawsuit alleges, per CNN, TMZ, and Yahoo.
According to TMZ, the investors say they didn’t learn about Wondermind’s problems until The Cut published an expose in September 2025 describing the company as being in a “state of utter disarray.” That article, which CNN says forms a major basis for the lawsuit, reported that the company was burdened by internal power and relationship struggles.
The suit leans on The Cut’s reporting for some of its most striking allegations. TMZ reported that the article outlined Teefey’s alleged substance abuse disorder and gross mismanagement of the company, along with Gomez’s “abject dereliction of her duties to the company” and her active efforts to distance herself from it. Citing The Cut, the suit claims Gomez didn’t fulfill her contractual obligations because of “her long-running personal struggles with her mother,” per CNN. The article also referenced the company struggling to meet basic obligations like paying vendors and employees on time, according to TMZ.
There’s a money trail allegation, too. CNN reported that, according to the lawsuit, Teefey told investors Pierson had used investor funds to help pay her New York City rent — approximately $60,000 a month. Pierson left Wondermind in 2023, per CNN. And TMZ reported that when investors confronted Teefey about The Cut’s claims, she tried to shift blame onto Pierson, who had already left the company.
Control of the company, the suit claims, sat squarely with the three founders: Gomez, Teefey, and Pierson collectively owned almost 90% of Wondermind’s shares, according to CNN.
The denials so far
None of the allegations have been proven, and the defendants who have spoken are pushing back hard.
Pierson issued a statement Thursday saying she “denies the allegations against her and welcomes the opportunity to present concrete documentation and financial records that establish the facts,” per CNN. Her spokesperson went further in a statement Yahoo says was given to USA TODAY: “To be clear, she has never used investor funds for personal expenses. Quite the opposite: Daniella invested her own money into the business and did not draw a salary from the company.”
Teefey has previously denied the substance abuse claims and the characterization of the company as a mess. “It’s unfortunate that a few disgruntled employees with an ax to grind can spread lies about me and distort the truth,” she said, according to TMZ. “Even more disappointing that the media is willing to amplify their lies.”
Gomez herself has not commented. CNN reported that Gomez, Teefey, and Wondermind did not immediately return a request for comment, and Yahoo noted their representatives had not yet responded to the lawsuit.
Where the reports don’t line up
A few details differ across outlets, which is worth flagging. TMZ described the plaintiffs as two investment companies who put in “over $1 million,” while CNN reported five investors who invested $1.2 million and Yahoo put the figure at almost $1.2 million — figures in the same ballpark, but framed differently. CNN and Yahoo also conflict on whether Wondermind launched in 2021 or was founded in 2022. And while CNN lists securities fraud, common law fraud, breach of contract, and other claims, TMZ emphasized the securities fraud count and said damages are unspecified. None of these discrepancies change the core story: investors say they were misled, and they want their money back.
What happens next
This is a freshly filed civil case, so the next moves are procedural. The investors are seeking a jury trial, the return of their investment, and damages including legal fees, according to Yahoo. CNN reported the plaintiffs also want attorney’s fees on top of recouped investments.
Gomez and Teefey have not yet formally responded to the suit, per Yahoo, so expect statements or court filings from their side in the coming weeks. Whether the case ever reaches that jury is an open question — but the discovery process, if it proceeds, could force Wondermind’s internal records into the open, including the financial documentation Pierson says she welcomes the chance to present.
One thing the lawsuit does not appear to threaten is Gomez’s broader fortune. Yahoo noted she is reportedly a billionaire, with her wealth driven largely by her cosmetics brand, Rare Beauty — a separate business from the startup now at the center of this fight.
Celebrity-founded companies rarely end up in a courtroom, but they are increasingly serious business: Authentic Brands just bought 51% of Drake’s OVO, a very different kind of celebrity brand story. And for the calendar side of Gomez’s industry, the 2026 Emmys air Sept. 14 on NBC.
Quick poll
If this case reaches discovery, what would you most want to see explained?
Our take: discovery, if the case gets that far, could force Wondermind's internal records into the open — including the financial documentation Pierson says she welcomes the chance to present.
FAQ
Why is Selena Gomez being sued?
Investors in her mental health startup Wondermind allege they were defrauded of roughly $1.2 million through false representations about the company’s partnerships, resources, and prospects — and that the founders stayed silent for three years while the company collapsed, according to CNN, TMZ, and Yahoo.
Who else is named in the Wondermind lawsuit?
Besides Gomez, the suit names her mother and co-CEO Mandy Teefey, former business partner Daniella Pierson, and Wondermind Global itself, per TMZ and CNN.
What is Wondermind?
Wondermind is a mental health media platform co-founded by Gomez, Teefey, and Pierson, pitched as the “world’s first mental fitness ecosystem,” according to Yahoo. CNN reported it claimed a $95 million valuation in 2022, though the lawsuit alleges its promised app was never built.
Has Selena Gomez responded to the lawsuit?
Not yet. CNN reported that Gomez, Teefey, and Wondermind did not immediately return requests for comment. Pierson has denied the allegations and says financial records will establish the facts.
