Selena Gomez Slams 'Completely Meritless' Fraud Lawsuit Over Mental Health Startup Wondermind

Selena Gomez is fighting back after being accused of fraud by investors in Wondermind, the mental health startup she co-founded with her mother, Mandy Teefey, and former business partner Daniella Pierson. Two investment firms, Wondermind SRS 44 LLC and Bespoke Wondermind LLC, filed a lawsuit in Delaware federal court on Thursday, August 13, alleging that Gomez, Teefey, and Pierson "falsely represented" the company's infrastructure, leadership, and resources. The plaintiffs claim they invested nearly $1.2 million in September 2022 after being told that Gomez would be "intimately involved" in marketing and publicity efforts, and that Pierson was a "$200 million executive" with a "full slate of revenue-generating initiatives" already underway. However, the lawsuit alleges that promised partnerships with JPMorgan and Fidelity "did not exist," a groundbreaking app was "never built," and advertising deals and celebrity cover stories never materialized. According to the complaint, the company "quietly collapsed" over three years while its founders stayed silent. Gomez, 34, was accused of "ignoring" her purported contractual obligation to "actively build the company as its head of marketing" through her massive social media following, advertising deals, and TV appearances. The lawsuit described Gomez's "abject dereliction of her duties" as leaving the company in a "state of disarray".

The Allegations

The plaintiffs claim they only learned about the company's "utter financial and operational disarray" from a September 2025 exposé in The Cut. The article detailed internal power struggles and alleged that Teefey had a "long-running substance abuse problem, which significantly impeded her capacity to administer" Wondermind. In the Cut article, a staff member claimed they saw Teefey snort "what they believe was a line of Ritalin" in her office. She also allegedly received vitamin IV drips and liquid Benadryl from "a rotation of nurses" at the workplace. Teefey denied the substance abuse and collapsing company claims in a statement to TMZ. "Unfortunately, a few disgruntled employees with an ax to grind can spread lies about me and distort the truth. Even more disappointing that the media is willing to amplify their lies," she said.

Elsewhere in the suit, investors claimed when they confronted Teefey over the claims about Wondermind falling apart, she tried to blame Pierson, who was ousted from the company in January 2023 after "an internal dispute" with Teefey. Teefey also allegedly "deflected" a question about the state of the company from Bespoke member Andrew Resnick on April 8. "Hi Andrew, I guess I am confused. I thought we returned your investment along with the other investors you came in with," Teefey wrote in a message to Resnick, per the suit. "So, I am confused about owing you updates." When Resnick responded that he never received funds and asked which investors had been paid, Teefey allegedly replied, "That would be a question for Selena's legal team. I am not sure I am at liberty to give that info out, but I will touch base with them so they can reach out to you. I'll connect you once they respond." The investors claimed the mother-daughter duo knew all along that their drama made their joint involvement in Wondermind "impracticable."

According to the lawsuit, investors sent a notice of rescission and demanded their funds back after the article was published, but Teefey allegedly "never substantively responded" and later "disappeared." In April, she allegedly told plaintiffs via email that she "thought (they) had returned your investment," despite the fact that Wondermind had "returned nothing." Elsewhere in the lawsuit, the investors claimed Wondermind used a bunch of A-list celebrity names in its pitch materials to make the company look like it already had huge momentum. According to the complaint, Wondermind told them it had "interest or confirmation" for cover stories with Camila Cabello, Tim Cook, Elton John, Drake, and Megan Thee Stallion, but the investors alleged that those kinds of plans never materialized.

The Defense

In a statement to PEOPLE, Gomez's lawyer Mathew S. Rosengart strongly rejected the allegations. "The allegations that Selena Gomez engaged in any way whatsoever in any purported 'fraud' or other wrongdoing are completely meritless, both factually and legally. We will vigorously defend these false allegations and indeed are filing a motion to dismiss the baseless claims against her."

Teefey has not commented on the lawsuit beyond her earlier denial of the substance abuse allegations. Pierson, who left Wondermind in 2023, issued a statement denying the allegations. "Daniella categorically denies the allegations against her and welcomes the opportunity to present concrete documentation and financial records that establish the facts," a representative told USA TODAY. "To be clear, 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."

Background

Gomez, Teefey, and Pierson launched Wondermind in November 2021 as a mental health and wellness platform featuring articles, tools, and community support. Gomez was listed as co-founder, "chief impact officer," and head of marketing. The company was reportedly valued at $95 million in 2022, and the trio raised $5 million in series-A funding based on a company valuation of $100 million. On the official website, the brand describes itself as "The World's First Mental Fitness Ecosystem," providing informative articles with advice on mental health topics, a newsletter, celebrity interviews, podcasts, and worksheets.

Tensions within the company surfaced before the lawsuit. A Forbes report from August 2025 said Pierson left Wondermind after friction with Teefey. Forbes also reported that the company was struggling to pay employees, prompting Gomez to invest more money when she learned of the issue. Payroll faltered in March and April 2025, rattling employees. Many of the promised projects never materialized, The Cut reported, and employees told the outlet that Gomez did not appear to be very much involved, even as Teefey's behavior became more and more erratic. Forbes reported last May that the company was struggling financially under Teefey's stewardship.

Gomez has been public about her own mental health struggles and bipolar disorder diagnosis and has been recognized for her advocacy. The plaintiffs are seeking to recoup their investments, as well as damages and attorney fees, and are requesting a jury trial.