Topline
Investors in Selena Gomez’s struggling mental health startup, Wondermind, sued Gomez, her mother and the company’s co-founder in federal court Thursday, accusing them of securities fraud for promising initiatives that never materialized without properly communicating with the investors whose money was allegedly “funding the collapse.”
Selena Gomez and her mother, Mandy Teefey, were both accused of securities fraud in the lawsuit. (Photo by Jack Plunkett/Invision/AP)
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Key Facts
Wondermind SRS 44 and Bespoke Wondermind SPV, limited liability companies who say they invested nearly $1.2 million in Gomez’s startup, filed the lawsuit in Delaware federal court on Thursday, accusing the defendants of multiple counts of fraud and breach of contract.
The plaintiffs said they had invested in the company because they were falsely informed it had the infrastructure necessary to function, including proper leadership, partnerships and advertising deals, alleging these “representations were false.”
The plaintiffs cited a September 2025 article in The Cut, which detailed allegations of company mismanagement and substance abuse by Gomez’s mother, Mandy Teefey, as well as Gomez’s apparent efforts to distance herself from the company amid an alleged rift with her mother.
The lawsuit also cites Forbes reporting which found Daniella Pierson, a Wondermind co-founder and defendant in the lawsuit, had exaggerated the readership and valuation of her lifestyle newsletter, and the complaint says Teefey told the plaintiffs that Pierson had “misappropriated investor funds” after the Forbes article was published.
The plaintiffs’ securities fraud claim alleges the company made multiple misrepresentations, including that Gomez would be “intimately involved” in the company, the level of Pierson’s business acumen, Teefey’s fitness to serve in company leadership and the growth trajectory of the company.
crucial quote
“The partnerships did not exist. The initiatives never materialized. The app was never built. 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 plaintiffs say in their complaint.
This is a developing story. Check back for updates.