Investors sued Selena Gomez, her mother Mandy Teefey, and former business partner Daniella Pierson for allegedly defrauding them out of $1.2 million in a mental health startup, Wondermind.
Investors in Selena Gomez’s mental health startup, Wondermind, filed a federal lawsuit accusing Gomez, her mother Mandy Teefey, and co-founder Daniella Pierson of securities fraud, common law fraud, and breach of contract. The plaintiffs, who invested $1.2 million in 2022, claim the defendants falsely represented the company’s infrastructure, leadership, and partnerships. The suit, filed in Delaware, seeks rescission of their investments and damages.
Allegations and Investor Claims
The lawsuit, led by two limited liability companies—Wondermind SRS 44 and Bespoke Wondermind SPV—alleges that investors were misled about Wondermind’s plans to build a mental health app, secure advertising deals, and leverage Gomez’s influence. According to the complaint, the founders claimed the company had partnerships with JPMorgan and Fidelity, a full slate of revenue-generating initiatives, and a valuation projection, none of which materialized. The partnerships did not exist. The initiatives never materialized. The app was never built,
the plaintiffs said.
Investors allege that Teefey and Pierson misappropriated funds for personal expenses, including Pierson’s $60,000 monthly rent in New York City. The complaint cites a 2025 Forbes article that exposed Pierson’s exaggerated claims about her previous business, The Newsette. Teefey reportedly told investors after the article’s publication that Pierson had misappropriated investor funds to pay for her lifestyle, but she had not disclosed this before, the suit claims.
Company’s Defense and Denials
Pierson denied the allegations, stating in a statement to USA Today that she categorically denies the allegations against her and welcomes the opportunity to present concrete documentation and financial records that establish the facts.
She added, She has never used investor funds for personal expenses. Quite the opposite: Daniella invested her own money into the business and did not draw a salary from the company.
Gomez and Teefey have not publicly responded to the lawsuit. The complaint alleges that Gomez was involved in the company’s marketing and publicity efforts, a claim she allegedly ignored. The lawsuit also cites a 2025 article in The Cut, which detailed internal conflicts.
Background on Wondermind’s Collapse
Wondermind, co-founded by Gomez, Teefey, and Pierson in 2021, aimed to create a mental health and wellness platform. The company claimed a $95 million valuation in 2022 but reportedly ran out of cash by 2025, failing to pay employees. A Forbes article from May 2025 reported that the startup had “collapsed” and that Pierson had been ousted in 2023 following a dispute with Teefey. The lawsuit alleges that the founders concealed the company’s financial troubles for three years, even as it quietly collapsed around them.
The complaint also highlights that Pierson had previously claimed partnerships with JP Morgan and Fidelity, which investors say never existed. The plaintiffs argue that the founders stated false and misleading information about the company’s viability, leading them to invest based on false representations.
What’s Next for the Case
The lawsuit, which seeks a jury trial, is ongoing in Delaware federal court. The plaintiffs are demanding the return of their investments, damages, and attorney’s fees.