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.

A federal lawsuit filed in Delaware has accused mental health startup Wondermind, co-founded by Selena Gomez, her mother Mandy Teefey, and entrepreneur Daniella Pierson, of defrauding investors. The complaint alleged that the company misrepresented its business prospects, leadership, celebrity partnerships, and product development.

A federal lawsuit filed in Delaware has accused mental health startup Wondermind, co-founded by Selena Gomez, her mother Mandy Teefey, and entrepreneur Daniella Pierson, of defrauding investors. ((File Photo/ AFP))

Wondermind was launched in 2021 as a mental fitness company that aimed to reduce stigma surrounding 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 lawsuit seeks to rescind nearly $1.2 million in investments and recover damages.

What are the investors alleging?

The lawsuit alleged that Wondermind's founders made several promises that never materialized. Investors said that they were told the company would launch a dedicated Wondermind app, secure major advertising partnerships, and feature celebrity cover stories to drive growth.

According to the complaint, none of those initiatives were led to completion. The investors were instead repeatedly assured that the company was progressing as planned. Investors further alleged that they received limited updates and that many communications painted an overly optimistic picture of Wondermind's financial health and operations.

Additionally, they believed that Gomez's engagement as a star with a sizable and devoted fan base was what made the company valuable. According to the lawsuit, Wondermind promised that Gomez would be "intimately involved in the Company" as head of marketing and public relations.

The complaint specifically claimed that Gomez “purported to sign a contract obligating her to perform and then ignored it.” It further read, “The initiatives never materialized. The app was never built."

It added, “And 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 internal “turmoil”

The lawsuit pointed to two major reports published last year as evidence that Wondermind was experiencing significant internal problems.

A Forbes investigation titled “'Smoke And Mirrors': How This Entrepreneur Exaggerated And Self-Promoted Her Way Into Turmoil,” revealed Daniella Pierson's claims as CEO of the daily newsletter regarding reported audience figures and company valuations.

Additionally, investors were informed that she had partnered with Fidelity and JPMorgan.

Following the report, the lawsuit alleged Teefey told investors that Pierson had “misappropriated investor funds, including the Plaintiffs' funds" to finance an expensive lifestyle, which included her $60,000 monthly rent for her New York City apartment. However, investors claim they were never informed of those allegations before the Forbes article was published.

The complaint also referenced The Cut investigation, which was published in September 2025, “What Happened at Wondermind?” The article alleged Teefey struggled with substance abuse, Gomez had distanced herself from the company due to family disagreements and Pierson had left following disputes with Teefey.

The suit read, “The accounts in the Cut article collectively show that, from the outset, Wondermind had no plan for its future — much less a plan for achieving a multi-billion dollar valuation.”