Selena Gomez’s Wondermind Mental Health Startup Accused of Fraud by Investors

Several investors in Selena Gomez’s mental health startup Wondermind have filed a lawsuit accusing the company and its founders of misleading them about the startup’s financial health and business prospects.

Wondermind launched in 2021, with Gomez listed as a co-founder, chief impact officer and head of marketing. The platform was created to provide users with resources and information focused on mental fitness.

According to the lawsuit, five investors put $1.2 million into the company in 2022 after being told Wondermind had a valuation of $95 million and was pursuing partnerships and other major business opportunities.

The investors allege those opportunities never materialized. The lawsuit claims potential corporate partnerships, advertising deals, celebrity cover stories and a planned app failed to come to fruition.

The investors are also suing Gomez’s mother, Mandy Teefey, who was a co-chief executive officer, and former business partner Daniella Pierson. The lawsuit includes allegations of securities fraud, common law fraud and breach of contract. The plaintiffs are seeking to recover their investments, along with damages and attorney’s fees.

The lawsuit also references reporting by The Cut about internal conflicts at Wondermind. Pierson left the company in 2023.

Pierson has denied the allegations, saying she welcomes the opportunity to provide financial records and documentation to establish the facts. She also denied using investor funds for personal expenses.

Gomez, Teefey and Wondermind did not immediately respond to requests for comment.

The allegations in the lawsuit have not been proven in court.

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