Investors in Wondermind, the mental health startup Selena Gomez co-founded, have sued Gomez in Delaware federal court. The complaint also names her mother, Mandy Teefey, and co-founder Daniella Pierson, accusing them of securities fraud.
Two limited liability companies, Wondermind SRS 44 and Bespoke Wondermind SPV, brought the case, as Forbes reported. They say they invested nearly $1.2 million and accuse the defendants of multiple counts of fraud and breach of contract.
What the Wondermind Investors Allege
The plaintiffs say they were told Wondermind had the infrastructure it needed to function. That included proper leadership, partnerships and advertising deals, and the complaint alleges those representations were false.
“The partnerships did not exist. The initiatives never materialized. The app was never built. And 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 plaintiffs say in their complaint.
The investors point to a May 2022 meeting with Pierson and email correspondence the following month. According to the suit, Pierson said Wondermind had already secured partnerships with JP Morgan and Fidelity. She allegedly said the company expected $5 million in ad revenue that year and had grown to 150,000 subscribers.
Pierson then sent the investors a document suggesting the company’s valuation could eventually surpass $4 billion. The suit alleges these statements were misrepresentations.
Claims Against Gomez, Teefey and Pierson
All three individual defendants and Wondermind itself face securities fraud claims, according to the complaint. The suit says they misrepresented the company’s finances and overstated Gomez’s role as its “head of marketing.” It also alleges they misrepresented Teefey’s fitness to lead and Pierson’s business background.
Pierson alone faces a second securities fraud claim over statements about the company’s growth trajectory. She is also accused of conversion and unjust enrichment for allegedly misappropriating investor funds for personal purposes. All defendants are accused of fraudulent inducement, while Wondermind faces a breach of contract claim.
The investors say they did not learn of problems until Forbes reported that Pierson had exaggerated her success. When they asked Teefey for an explanation, the suit says, she alleged Pierson had misappropriated company funds. Teefey allegedly said the money covered Pierson’s New York apartment rent and other personal expenses.
A Mental Health Startup That Struggled for Years
Gomez and her co-founders launched Wondermind in 2022, guided by the idea that mental health requires daily effort. The company promised a website and an app with articles, interviews and advice about mental health. The suit notes that the app never came to fruition.
Forbes reported in May 2025 that the company had run out of cash and failed to pay employees the month prior. A company spokesperson told Forbes it had “rectified” the situation while admitting it faced “growing pains.” Days later, Forbes reported that Wondermind had laid off nearly two-thirds of its employees.
A September 2025 article in The Cut, based on interviews with current and former employees, alleged Teefey displayed “erratic behavior.” Some employees alleged she was sometimes intoxicated at work, an allegation Teefey denied. The Cut also reported that Teefey and Gomez had poured $8 million of their own money into the company.
According to the complaint, the defendants continued to misrepresent the health of the company as recently as April. The case now puts Wondermind and its three individual defendants before a Delaware federal court on multiple fraud counts.
