Investors who sank $1.2 million into Selena Gomez's mental health company Wondermind are suing the singer, her mother, and a former business partner in federal court, alleging they were deceived about the venture's readiness and resources.
Two investment entities, Wondermind SRS 44 LLC and Bespoke Wondermind LLC, filed the lawsuit on August 13, 2026, in federal court in Delaware. The complaint names Gomez, 34, her mother Mandy Teefey, 50, former business partner Daniella Pierson, and the company itself as defendants. The plaintiffs claim they invested nearly $1.2 million in September 2022 based on representations that turned out to be false, and that the defendants hid the company's unraveling for three years.
Gomez's attorney, Mathew S. Rosengart, fired back Saturday with a statement to Page Six dismissing the claims and announcing plans to seek a dismissal.
The lawsuit paints a picture of a company that sold investors on a vision it never delivered. The plaintiffs allege that Gomez, Teefey, and Pierson "falsely represented" that Wondermind "had the infrastructure, leadership, and resources necessary for the company to launch into a profitable, one-of-its-kind mental health and wellness platform." The complaint also claims the defendants used A-list names in pitch materials to suggest momentum, partnerships and initiatives that, according to the filing, never materialized.
The lawsuit's language is blunt:
"The partnerships did not exist. The initiatives never materialized. The app was never built."
The plaintiffs further accuse Gomez of ignoring her contractual obligation to actively build the company as its head of marketing. Instead, the complaint alleges, Gomez distanced herself from Wondermind due to "several undisclosed personal disputes" with Teefey. When investors eventually came asking questions, Teefey allegedly tried to shift blame onto Pierson for the company's downfall.
The investors say they did not learn the full extent of Wondermind's troubles until September 2025, when The Cut published a report describing the company as being in "utter financial and operational disarray." That article also included allegations of Teefey's "long-running substance abuse problem", claims Teefey denied in a statement to TMZ.
Teefey's denial was pointed:
"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."
Months before the lawsuit landed, warning signs were already public. Forbes reported in May 2025 that Wondermind had laid off 60 percent of its 15-person staff after employees claimed they had not been paid in weeks. The company also owed tens of thousands of dollars to freelancers and vendors. A Wondermind spokesperson blamed "growing pains" at the time.
By January 2023, just months after the plaintiffs' investment, Pierson had already been ousted from the company following what was described as an internal dispute with Teefey. A representative for Pierson told reporters she denies the allegations in the lawsuit, never used investor funds for personal expenses, invested her own money into the venture, and did not draw a salary from the company.
The plaintiffs are suing for securities fraud. They want their $1.2 million back, plus damages, costs, and attorney's fees, and they have requested a jury trial.
Rosengart left little ambiguity about the defense strategy. In his statement to Page Six, he said:
"The allegations that Selena Gomez engaged in any way whatsoever in any purported 'fraud' or other wrongdoing are completely meritless, both factually and legally."
He vowed to "vigorously defend these false allegations" and confirmed the legal team is "indeed filing a motion to dismiss the baseless claims."
Gomez herself has not commented publicly beyond her attorney's statement. Whether a federal judge in Delaware agrees that the claims lack merit, or finds enough substance to let the case proceed to discovery, will determine how much further this goes.
The case raises a familiar question: when a celebrity lends a famous name to a business venture and that venture collapses, who bears the cost? The investors say they put up real money based on specific promises. The defendants say the accusations are baseless. A jury may eventually sort it out, but the workers who went unpaid and the freelancers still owed money already know what Wondermind delivered.
