selena gomez wondermind
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Selena Gomez, Wondermind partners sued by investors

American singer and actress Selena Gomez, her mother Mandy Teefey and former business partner Daniella Pierson are facing a lawsuit from investors in Wondermind, a mental health startup co-founded by Gomez.

The investors have accused the three of misleading them about the company’s financial condition, business activities and future plans. The lawsuit was filed in a Delaware court on Thursday.

According to the complaint, two groups of investors collectively invested nearly $1.2 million in Wondermind. They allege that the company’s founders and executives made representations about its business that did not match reality.

The investors have brought several claims, including securities fraud, common-law fraud and breach of contract. They allege that they were kept unaware of serious problems within the company while their money continued to fund its operations.

Wondermind was launched in 2021 with a focus on mental fitness. The company promotes practical ways for people to prioritise their mental wellbeing in everyday life.

Gomez is identified as a co-founder of the startup, while Teefey served as its chief executive. Pierson was also a co-founder but left the company in 2023 following reported disagreements with Teefey.

The investors claim they were encouraged to put money into Wondermind after being told about major commercial opportunities. These allegedly included partnerships with companies such as JPMorgan, advertising arrangements, celebrity magazine features and plans for a major mobile application.

According to the lawsuit, those opportunities either did not exist or failed to materialise. The investors also allege that the promised app was never developed.

The complaint claims the investors only became aware of the company’s internal problems after a September report examined disputes within Wondermind and allegations of mismanagement.

The investors subsequently contacted Teefey in November and requested that their money be returned. They say Teefey initially indicated that she would respond within 10 days but did not provide a substantive response.

The complaint states that Teefey later replied to another notice in April, saying she believed the investment had already been returned. She reportedly referred further questions to Gomez’s legal team.

The investors allege that Teefey later said Wondermind had established an escrow account to facilitate repayment. However, they claim repeated requests for information about the account went unanswered.

The plaintiffs allege that no such escrow account existed and describe the events as part of an alleged years-long scheme to mislead investors.

The lawsuit seeks repayment of the investors’ original funds, along with additional damages and legal costs.

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