Selena Gomez and her mother, Mandy Teefey, are facing a lawsuit alleging they deceived investors in their mental health company, Wondermind. Two investment entities, Wondermind SRS 44 LLC and Bespoke Wondermind LLC, filed suit on Thursday against Wondermind Global, Gomez, Teefey, and former business partner Daniella Pierson. The plaintiffs claim they invested $1.2 million in September 2022, based on what they assert were false representations about the company’s infrastructure, leadership, and potential for profitability as a mental health and wellness platform.
The lawsuit states that Gomez, as head of marketing, allegedly failed to fulfill her contractual obligation to leverage her substantial social media presence, advertising deals, and public appearances to build the company. Investors claim the promised partnerships and initiatives never materialized, and the app was never developed. The suit asserts that Wondermind "quietly collapsed" over three years, a situation that Gomez, Teefey, and Pierson allegedly concealed from investors.
According to the suit, investors learned of Wondermind's alleged financial and operational struggles when The Cut published an article in September 2025. The article reportedly included claims about Teefey’s alleged substance abuse issues, which the lawsuit contends significantly impacted her ability to manage the company. The article cited an instance where a staff member allegedly observed Teefey consuming a substance in her office and receiving medical treatments within the workplace.
Teefey has denied the allegations of substance abuse and company collapse. "It's unfortunate that a few disgruntled employees with an ax to grind can spread lies about me and distort the truth," Teefey stated to TMZ. "Even more disappointing that the media is willing to amplify their lies."
When confronted about the company's alleged decline, Teefey reportedly blamed Pierson, who was removed from the company in January 2023 following an internal dispute with Teefey. The lawsuit also notes communications where Teefey expressed confusion about investor funds, suggesting the matter be handled by Gomez's legal team.
Furthermore, the lawsuit touches upon the relationship between Gomez and Teefey, suggesting Gomez distanced herself from Wondermind due to undisclosed personal disputes with her mother. Investors contend that the mother-daughter dynamic made their joint involvement in the company untenable.
Investors also allege that Wondermind used the names of A-list celebrities in its promotional materials to suggest significant early momentum. The complaint claims that Wondermind indicated it had interest or confirmation for features with notable figures, but these plans allegedly never materialized.
The plaintiffs are seeking damages for securities fraud, the return of their investments, and legal costs, demanding a jury trial. Representatives for Gomez and Wondermind have been contacted for comment.
Wondermind, a multimedia platform intended to provide mental health support, was co-founded by Gomez, Teefey, and Pierson in 2022. In May 2025, Forbes reported that Wondermind laid off 60 percent of its staff, with employees claiming they had not been paid for weeks and that the company owed significant amounts to freelancers and vendors. A spokesperson for Wondermind at the time stated the company had addressed the financial issues and was experiencing typical "growing pains."