Selena Gomez and mother accused of defrauding investors of her collapsing mental health company in new lawsuit

Selena Gomez and her mother have been accused of fraud in a lawsuit filed by investors in her mental health company Wondermind.

The suit alleges founders ‘falsely’ represented the crumbling organization as one poised for success. 

Founded by Selena Gomez, her mom Mandy Teefey and Daniella Pierson in 2021, Wondermind was caught up in controversy last year following The Cut’s exposé revealing alleged disarray behind-the-scenes of the company.

Now investors who poured $1.2 million into the organization claim they were left in the dark about the problems going on in the company for more than three years before The Cut’s expose was published.

The plaintiffs, Wondermind SRS 44, LLC and Bespoke Wondermind SPV I, LLC,  are seeking a jury trial in the lawsuit filed against Gomez, Teefey, Pierson and Wondermind Global Inc. alleging they were hoodwinked into believing the company had the resources necessary for success while, unbeknownst to them, it ‘was in the midst of collapse.’ 

The Daily Mail has contacted representatives for Gomez and Teefey for comment.  

In court documents obtained by The Daily Mail, the plaintiffs allege: ‘The Defendants falsely represented that the Company had the infrastructure, leadership, and resources necessary for the Company to launch into a profitable, one-of-its-kind mental health and wellness platform.

‘Among other misrepresentations, the Company, including through the Individual Defendants, who directly solicited the Plaintiffs’ investments, told the Plaintiffs three things: that Selena Gomez, one of the most famous women on earth with a billion-dollar brand and a platform unmatched in social media, would be actively building the Company as its head of marketing; that co-CEO Daniella Pierson was a $200 million executive whose prior businesses generated $40 million a year and who had already secured institutional employer partnerships with JPMorgan and Fidelity; and that a full slate of revenue generating initiatives, including advertising deals, celebrity cover stories, and a groundbreaking app, were already underway. These representations were false.’

The claim alleges that Gomez ‘purported to sign a contract obligating her to perform’ only to ignore it. ‘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 claim alleges. 

Only ‘after years of concealment’ did investors learn about the inner workings of the company through The Cut expose. 

The company was inspired by the founders’ respective mental health struggles but was hit by controversy in May 2025 when it emerged the platform was in financial crisis and had laid off 60 per cent of its employees.

In a The Cut piece, anonymous employees accused Wondermind CEO Teefey of erratic behavior, including ‘hallucinating’ a break-in at the business, sleeping over at the office for days and frequently getting injections of liquid Benadryl, which she allegedly claimed were vitamin IV drips.

One anonymous staff member called Teefey’s office her ‘drug den’ – while another claimed they were in her office when she snorted ‘what they believe was a line of Ritalin,’ an ADHD medication.

Teefey told the publication she did ‘absolutely not’ snort Ritalin in her office, adding in a statement: ‘I started Wondermind because I wanted to help people with mental illness. It’s unfortunate that a few disgruntled employees with an ax to grind can spread lies about me and distort the truth.’

The lawsuit lays bare the aftermath of The Cut’s revelation. 

‘The information unearthed in this article proved not only that the Company was, and is, in a state of financial calamity; it proved that the Defendants’ representations about the Company’s operations, personnel, and financial prospects were a fiction. There was no legitimate enterprise in the works, much less a lucrative one,’ the lawsuit claims.   

Following the publication of The Cut exposé, the plaintiffs sought a rescission of their investments and a return of their investment funds, sending them a notice of rescission.

However, the defendants allegedly proceeded to ‘lull and mislead the Plaintiffs’ – with one alleged email from Teefey claiming Wondermind was ‘now on track to release products in the first quarter to straight profit.’ 

Teefey also downplayed ‘the accusations of my misconduct and financial disarray’ and assured them she would ‘respond in 10 days as requested.’ 

The suit claims Teefey ‘never substantively responded to the notice’ and continued to change her story of what became of the investment funds. 

‘On April 8, 2026, when Resnick [Andrew Resnick of Bespoke Wondermind LLC, which invested in Wondermind] asked Teefey whether there were any updates on the Company, Teefey replied: “Hi Andrew – I guess I am confused. I thought we returned your investment along with the other investors you came in with. So, I am confused about owing you updates. Please advise.” Wondermind had returned nothing, to Resnick or to any of the Plaintiffs. 

‘When Resnick responded that he had received no funds and asked which investors had been paid back, Teefey deflected: “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.” No one from Gomez’s legal team has ever contacted the Plaintiffs.’

The following day, Resnick received an email from Teefey which referred to an unidentified lawsuit and negotiations.

‘Although Resnick did not understand to what, exactly, Teefey was referring, Teefey wrote: “I just forwarded this to PJ Shapiro and Thomas Kingsley. Our lawyers were not handling but we did answer the lawsuit and I know negotiations have been happening. So, please do not need anymore threats on lawsuits that should be towards our co founder Daniella since all allegations were her actions. Thank you for your understanding and trust we have and will co to use [sic] take this seriously.’

Gomez’s alleged strained relationship with her mother was also misrepresented to investors, the suit claims.

Plaintiffs allege they were told the actress would be ‘intimately involved’ in the company, despite founders being well-aware their ‘undisclosed personal disputes’ would ‘make such involvement impracticable.’

‘Misrepresenting that Gomez would be intimately involved in the Company as Wondermind’s Chief Impact Officer and “head of marketing,” when the Defendants knew that the long-running, undisclosed personal disputes between Teefey and Gomez would make such involvement impracticable,’ the suit claims. 

The suit also claims the defendants were aware Teefey had substance abuse issues that made her ‘unfit to manage the company.’

‘Misrepresenting Teefey’s fitness to serve as an officer and director of the Company, when the Defendants knew that Teefey had substance abuse issues that diminished her capacity to administer the Company, and when the Defendants knew that Teefey was otherwise unfit to manage the Company,’ the suit claims. 

Additionally, co-founder Pierson’s business experience and achievements were said to have been misrepresented to founders: ‘Misrepresenting Pierson’s business background and accolades, including Pierson’s claims to the Plaintiffs that The Newsette generated $40 million in yearly revenue and had a valuation of approximately $200 million, when Pierson knew that these representations were false.’

The plaintiffs allege they were unaware of the troubles behind the scenes due to the defendant’s attempts to conceal their conduct.

They allege they were told the company was ‘thriving’ when they were not and claim the defendants ‘acted to lull’ plaintiffs and other investors by ‘mispresenting’ the truth of their business.

They also point out they were not privy to issues going on behind-the-scenes that otherwise wouldn’t be found out by a ‘reasonably diligent investor’.

‘Defendants acted to lull the Plaintiffs and other investors, including by affirmatively misrepresenting that the Company was performing well and poised for success, even when they knew that the Company had significant operational, financial, and management issues,’ the suit states.

Now the investors are seeking a rescission of their Wondermind investments, damages, costs, attorney’s fees, and other possible relief. 

‘The Plaintiffs accordingly bring this Complaint for securities fraud under Rule 10b-5 of the Securities Exchange Act of 1934, common law fraud, and breach of contract, among other claims. 

‘The Plaintiffs seek rescission of their investments in Wondermind, damages, costs, attorney’s fees, and any other relief to which they are entitled under applicable law. ‘

The Wondermind website currently has numerous articles offering advice on combatting loneliness, rumination, setting boundaries and interviews with celebrities discussing their mental health.

Teefey is listed as co-founder and CEO and Gomez as co-founder (Pierson departed the company in 2023). An advisory board featuring mental health professionals also exists.

The new complaint isn’t the first lawsuit the company has faced.

Earlier this year, the company was sued over $813,027.18 in back-rent by the company’s former landlord in New York City.