At A Glance
- Selena Gomez is facing a lawsuit from investors who accuse her and her Wondermind co-founders of misleading them about the mental health startup's operations, plans and prospects.
Selena Gomez is facing a lawsuit from investors who claim they were misled about her involvement and the business prospects of Wondermind, the mental health startup she co-founded.
Two investment groups filed the case Thursday in federal court in Delaware, alleging securities fraud and breach of contract. They say they invested nearly $1.2 million in Wondermind based on representations about the company, its leadership and Gomez’s role in helping build the business.
Wondermind was launched in 2021 by Gomez, her mother Mandy Teefey and entrepreneur Daniella Pierson. The company was positioned as a platform offering resources aimed at improving mental wellness.
According to the lawsuit, investors were told Gomez would take an active role in marketing and growing the company. They also claim they were given assurances about revenue-generating initiatives and other plans that did not materialize, including a mobile app.
The investors further allege that they were not informed about serious problems within Wondermind as the company struggled with its operations and finances.
They said they only learned about the extent of the company's troubles after The Cut published an investigation in September 2025.
The lawsuit claims the investors later sought the return of their money but were unable to recover their investment. They are now seeking repayment, damages and legal fees.
Teefey and Pierson are also named in the lawsuit. Pierson reportedly left the company in 2023 after disagreements with Teefey, according to reports.
The allegations have yet to be proven in court. A representative for Gomez has not publicly responded to the lawsuit, according to reports.
The case puts renewed attention on Wondermind, a venture that was closely associated with Gomez's public advocacy for mental health and her enormous social media following.