- Selena Gomez and her mother Mandy Teefey are accused of defrauding investors in their mental health startup Wondermind in a federal lawsuit filed Thursday.
- Wondermind was co-founded by Gomez, Teefey, and Daniella Pierson in November 2021 and aimed to provide mental fitness practices and tools.
- Investors poured nearly $1.2 million into Wondermind, but allege they were misled about the company's plans and operations.
- The lawsuit claims that the founders falsely represented the company’s infrastructure, leadership, and partnerships to investors.
- A September 2025 article in The Cut alleged that Wondermind was falling apart, which investors claim they were unaware of until then.
- In November 2025, investors sent a notice of rescission demanding the return of their funds, leading to the federal lawsuit.
- The federal lawsuit accuses Gomez, Teefey, and Pierson of securities fraud, common-law fraud, and breach of contract.
- The lawsuit claims that the founders promised to build a Wondermind app and secure advertising deals, none of which materialized.
- Investors believed their funds would help scale the company and create a full suite of products, including a podcast and editorial publication.
- The lawsuit alleges that for over three years, the founders did not inform investors about the company's operational and financial issues.
- The investors claim they were misled about Pierson's background and the company's financial health, which was described as a financial calamity.
Selena Gomez and her mother, Mandy Teefey, along with former partner Daniella Pierson, are embroiled in a federal lawsuit filed by investors of their mental health startup, Wondermind. The lawsuit, initiated by Wondermind SRS 44 LLC and Bespoke Wondermind SPV I LLC, alleges securities fraud, common-law fraud, and breach of contract.127
The investors claim they were misled about the startup's potential, having invested nearly $1.2 million based on false representations regarding the company's infrastructure and leadership. The suit states, “The partnerships did not exist. The initiatives never materialized. The app was never built.”34
Gomez's attorney, Mathew Rosengart, has labeled the claims as “meritless” and plans to file a motion to dismiss. Pierson, who left the company in early 2023, has also denied the allegations, asserting she never used investor funds for personal expenses and welcomes the chance to present evidence.
The lawsuit seeks rescission of the investment contract and damages, highlighting a troubling narrative of mismanagement and deception within the startup. The investors assert that for over three years, the founders failed to communicate the company's decline, leading to significant financial losses.6
As the case unfolds, the founders are expected to defend their actions vigorously, with Gomez's legal team emphasizing the lack of factual basis for the claims against her.
“The lawsuit, filed by Wondermind SRS 44 LLC and Bespoke Wondermind SPV I LLC, alleges the founders misrepresented the company's infrastructure and partnerships, including claims of ad deals and celebrity cover stories that never materialized. Gomez's attorney Mathew Rosengart called the allegations 'completely meritless' and plans to file a motion to dismiss.”
Canadian Lawyer
