Singer Selena Gomez and mom sued for allegedly defrauding investors as mental health company falls apart

Selena Gomez and her mother, Mandy Teefey, are facing a lawsuit from investors who allege they were misled into investing more than $1 million in their mental health company, Wondermind, while the business was allegedly struggling internally.

The lawsuit was filed by Wondermind SRS 44 LLC and Bespoke Wondermind LLC against Wondermind Global, Gomez, Teefey and former business partner Daniella Pierson.

According to the investors, Gomez and her mother made false representations about the company’s infrastructure, leadership and resources needed to develop Wondermind into a profitable platform. They allege they invested more than $1 million after Gomez publicly promoted the company through television appearances and interviews.

The investors also claim Gomez presented herself as heavily involved in the business but did little after their investment was made. They further allege that Pierson misrepresented her previous business achievements and the potential returns investors could expect.

The lawsuit claims that “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 investors say they only became aware of the alleged problems after The Cut published an investigation in September 2025 describing Wondermind as being in a “state of utter disarray.”

According to the lawsuit, the report detailed allegations of mismanagement involving Teefey, including claims of substance abuse, as well as Gomez’s alleged failure to fulfil her responsibilities to the company and efforts to distance herself from the business amid personal difficulties involving her mother. The investors also allege that Wondermind struggled to meet basic financial obligations, including paying vendors and employees on time.

Teefey has denied the substance abuse allegations and claims that Wondermind was poorly managed. She said, “It’s unfortunate that a few disgruntled employees with an ax to grind can spread lies about me and distort the truth. Even more disappointing that the media is willing to amplify their lies.”

The investors say that when they confronted Teefey about the allegations in The Cut report, she attempted to blame Pierson, who had already left the company. The investors are suing for securities fraud and seeking unspecified damages, including the return of their investments and other financial compensation.