Selena Gomez and her mother Mandy Teefey co-founded the mental health startup Wondermind in 2021, aiming to offer a mental fitness platform with podcasts, newsletters, and other content [1, 2, 3].
In 2022, five investors invested nearly $1.2 million in Wondermind’s Series A preferred stock after the founders assured them of the company’s profitability and prospects [3].
On August 13 or 14, 2026, the investors filed a lawsuit in Delaware federal court against Wondermind, Gomez, Teefey, and co-founder Daniella Pierson, alleging they were misled for over three years regarding leadership, profitability, marketing participation, partnerships, and product development [1, 2, 3].
The plaintiffs claim Wondermind never developed the promised mobile app and failed to secure announced corporate partnerships. They also allege Gomez did not participate as promised in marketing efforts [1, 2, 3]. The complaint includes charges of common-law fraud, securities fraud, breach of contract, and other violations, seeking to rescind investment contracts or recover damages with costs and interest [1, 2, 3].
Pierson denied the allegations, stating she "never used investor funds for personal expenses, instead invested her own money and never took a salary from the company." She added, "I welcomed the opportunity to present documents and financial records supporting my position" [1, 3].
Wondermind publicly revealed financial and operational difficulties only after a media report surfaced in September 2025 [3]. As of August 2026, Gomez, Teefey, and Wondermind have not issued a public response to the lawsuit [4, 3].
The case is now pending in federal court, with no trial date announced.
