Selena Gomez Sued by Investors Over Alleged Fraud at Mental Health Company
Shareholders claim the pop star failed to fulfill promises of active involvement in Wondermind Global, leading to financial difficulties.
Pop star and actress Selena Gomez is facing a lawsuit from five investors who backed Wondermind Global, a mental health business she co-founded. The investors allege that Gomez did not actively participate in building the brand as promised, contributing to the company's alleged "state of financial calamity."
The lawsuit, filed by shareholders based in New York and Florida, seeks to recover approximately $1.2 million in invested funds, along with costs and damages. Among the claimants is Brent Saunders, chief executive of eye-health company Bausch + Lomb.
Wondermind Global was established five years ago by Gomez, her mother Mandy Teefey, and businesswoman Daniella Pierson. The company aimed to enhance accessibility to mental health content through a digital platform, drawing on Gomez's public discussions about her own mental health challenges, including bipolar disorder.
According to the lawsuit, founders "falsely represented" the company's standing by suggesting a robust pipeline of ad deals, celebrity features, and an app were in development. Investors claim Gomez was promised as head of marketing and that she would take an active role. "Gomez purported to sign a contract obligating her to perform and then ignored it," the complaint states.
The suit further alleges that Wondermind failed to meet basic operational obligations, such as timely payments to employees and vendors. Promises regarding partnerships and the development of an app reportedly never materialized. The investors stated they were unaware of the company's financial struggles until an investigative report by The Cut surfaced in September 2025, which detailed issues with Wondermind's finances and management.
Gomez is currently listed as a co-founder on the Wondermind website. Her mother has since taken over as chief executive, following Daniella Pierson's departure from the company. Gomez also founded the cosmetics company Rare Beauty in 2020, which is closely linked to her public persona. The BBC has reached out to Wondermind and Gomez's representatives for comment.