Selena Gomez and her mother, Mandy Teefey, are facing a fraud lawsuit from investors in their mental health company, Wondermind. The investors allege that the company's founders "falsely represented the crumbling organization as one poised for success," concealing its financial distress for over three years.
Gomez's attorney, Mathew S. Rosengart, stated that the allegations are "completely meritless, both factually and legally." He added, "We will vigorously defend these false allegations and indeed are filing a motion to dismiss the baseless claims against her."
The lawsuit, filed by Wondermind SRS 44, LLC and Bespoke Wondermind SPV I, LLC, claims that the defendants "hoodwinked" investors into believing the company possessed the necessary resources for success while it was "in the midst of collapse." Investors reportedly poured $1.2 million into the organization.
According to the court documents, plaintiffs allege that the defendants misrepresented Wondermind's infrastructure, leadership, and financial prospects. Specific claims include assertions that Gomez, described as having "a billion-dollar brand and a platform unmatched in social media," would be actively involved as head of marketing. The suit also claims co-CEO Daniella Pierson was presented as a successful executive with secured partnerships, and that revenue-generating initiatives were already underway. The plaintiffs assert these representations were false, with partnerships not existing, initiatives not materializing, and an app never being built.
The suit further alleges that for three years, the founders remained silent about the company's problems, allowing it to collapse around them. Investors reportedly learned of the internal disarray and financial crisis through an exposé published by The Cut. The exposé detailed alleged erratic behavior by Wondermind CEO Mandy Teefey, including claims of substance abuse and financial mismanagement, which Teefey has denied.
Plaintiffs sought to rescind their investments and recover their funds after The Cut's report. However, they claim the defendants attempted to "lull and mislead" them with further assurances. One alleged email from Teefey suggested Wondermind was "on track to release products in the first quarter to straight profit," while downplaying misconduct and financial disarray allegations. The suit contends Teefey never substantively responded to the notice of rescission and provided shifting accounts of the investment funds.
The lawsuit also details alleged misrepresentations regarding Gomez's involvement and Teefey's fitness to manage the company. Plaintiffs claim they were told Gomez would be "intimately involved" despite undisclosed personal disputes between her and her mother making such involvement impracticable. The suit also alleges defendants knew Teefey had substance abuse issues that diminished her capacity to administer the company.
Furthermore, the suit claims co-founder Pierson's business background and achievements were misrepresented. Investors were allegedly told her previous business generated $40 million in yearly revenue and had a valuation of approximately $200 million, which the plaintiffs claim were false.
The founders established Wondermind in 2021, inspired by their personal struggles with mental health. The company faced controversy in May 2025 when reports emerged of a financial crisis and significant layoffs. The company's website features articles on mental health advice and interviews with celebrities. Wondermind previously faced a lawsuit over unpaid rent.
Investors are seeking rescission of their Wondermind investments, damages, and legal fees, bringing claims for securities fraud, common law fraud, and breach of contract.
