Selena Gomez Sued for Fraud Over Mental Health Startup Wondermind

Singer and actor Selena Gomez was sued in federal court on August 13 by investors who allege she committed fraud by failing to fulfill duties to build and promote her mental health start-up, according to court documents cited by Reuters.

The plaintiffs invested nearly $1.2 million in Wondermind Global, a venture launched in 2021 by Gomez, her mother Mandy Teefey, and Daniella Pierson to help users strengthen their mental health, according to the lawsuit filed in federal court in Delaware and reported by Reuters and the Daily Mail. Investors assert they were told Gomez, who commands more than 500 million followers on social media, would actively participate in building the company as its head of marketing.

Lawsuit Allegations and Financial Claims

According to the Daily Mail, the plaintiffs—identified as Wondermind SRS 44, LLC and Bespoke Wondermind SPV I, LLC—are seeking a jury trial after alleging they were hoodwinked into believing the company possessed the necessary resources for success while it was actually collapsing. The lawsuit states that defendants falsely represented that the company had the infrastructure and leadership to launch a profitable platform.

The legal filing asserts that Gomez “purported to sign a contract obligating her to perform and then ignored it,” as reported by Reuters. Investors claim the enterprise lacked legitimate operations and failed to meet basic obligations, such as timely paying employees and vendors. Furthermore, the complaint alleges that co-CEO Daniella Pierson was characterized as a $200 million executive who had already secured employer partnerships with JPMorgan and Fidelity, but those partnerships did not materialize and the promised mobile app was never built.

Behind-the-Scenes Turmoil and Prior Reports

According to the Daily Mail, investors state they were left in the dark about internal company problems for more than three years. They only discovered the true operational state of Wondermind following an exposé published by The Cut in September 2025.

The company hit significant controversy in May 2025 when reports revealed the platform faced a financial crisis and laid off 60 percent of its employees. The Cut’s reporting detailed internal turmoil, including anonymous staff claims regarding Mandy Teefey’s behavior and operational disarray at the office. Reuters noted that a representative for Gomez did not immediately respond to a request for comment regarding the lawsuit, and the Daily Mail reported that representatives for Gomez and Teefey had not yet responded to inquiries.