What is Selena Gomez's and Mandy Teefey Wondermind accused of? Here's what we know
A new federal lawsuit accused Wondermind and its founders of misleading investors about the mental health startup's operations.
What are the investors alleging against Wondermind?
A federal lawsuit filed in Delaware has accused mental health startup Wondermind, co-founded by Selena Gomez, Mandy Teefey and entrepreneur Daniella Pierson, of defrauding investors.
The lawsuit alleges that the company misrepresented its business prospects, leadership, celebrity partnerships and product development.
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Wondermind was launched in 2021 as a mental fitness company. It aimed to reduce the stigma around mental health through digital content and wellness resources.
The complaint was filed by Wondermind SRS 44 LLC and Bespoke Wondermind SPV I LLC, two investment entities that funded the startup. The investors are seeking to rescind nearly $1.2 million in investments and recover damages.
According to the lawsuit, Wondermind's founders made several promises that were never fulfilled. Investors alleged they were told the company would launch a dedicated app, secure major advertising partnerships and feature celebrity cover stories to boost growth.
The complaint said none of those plans were completed. Investors also alleged that they received limited updates while being repeatedly assured that the company was progressing as planned.
The investors further claimed that Wondermind's communications presented an overly optimistic picture of its financial health and operations.
Gomez's involvement was also central to the investors' expectations. The lawsuit alleged that her large and devoted fan base was a key factor in the company's value.
According to the complaint, Wondermind promised that Gomez would be "intimately involved in the Company" as its head of marketing and public relations.
The lawsuit claimed that Gomez "purported to sign a contract obligating her to perform and then ignored it."
"The initiatives never materialized. The app was never built," the complaint alleged.
It further claimed that investors were not informed about the company's alleged problems for three years.
The alleged internal turmoil
The lawsuit cited two reports published in 2025 as evidence of what it described as significant internal problems at Wondermind.
A Forbes investigation, titled "'Smoke And Mirrors': How This Entrepreneur Exaggerated And Self-Promoted Her Way Into Turmoil," examined Pierson's claims about audience figures and company valuations.
The report also covered claims that Pierson had partnered with Fidelity and JPMorgan.
Following the Forbes report, the lawsuit alleged that Teefey told investors Pierson had "misappropriated investor funds, including the Plaintiffs' funds" to finance an expensive lifestyle, including a $60,000-a-month New York City apartment.
The investors, however, claimed they had not been informed of those allegations before the Forbes report was published.
The complaint also cited a September 2025 investigation by The Cut titled "What Happened at Wondermind?"
The article alleged that Teefey struggled with substance abuse, Gomez had distanced herself from Wondermind amid family disagreements and Pierson had left the company following disputes with Teefey.
The lawsuit argued that the reports showed Wondermind lacked a clear plan for its future, despite ambitions of reaching a multibillion-dollar valuation.
