Investors sue Selena Gomez for fraud over mental health startup Wondermind

The lawsuit

On August 13, 2026, five investors filed a lawsuit in federal court in Delaware accusing Selena Gomez, her mother Mandy Teefey, and entrepreneur Daniella Pierson of securities fraud and breach of contract over their mental health startup, Wondermind Global Inc. The plaintiffs, Brent Saunders, Marc Roberts, EJ Solimine, Andrew Resnick, and Mark Peikin, say they invested nearly $1.2 million in the company in 2022 through two entities, Wondermind SRS 44 and Bespoke Wondermind SPV, and are seeking to recover their investments plus legal fees. Forbes first reported the lawsuit. A representative for Gomez did not immediately respond to a request for comment, and Wondermind did not respond to a request from TechCrunch. Bloomberg reported that the startup collapsed last year.

What investors say they were promised

Wondermind was co-founded in 2021 by Gomez, Teefey, and Pierson with plans for a digital magazine, mobile app, and podcast focused on mental health resources. The website launched roughly a year later. After initial funding of $12 million from friends and family, the company sought an additional $5 million from outside investors in 2022. According to the lawsuit, Pierson told investors that Wondermind had a potential future valuation exceeding $4 billion and that she had generated $40 million a year in revenue at her prior media company, The Newsette. She also allegedly claimed the company had already secured institutional partnerships with JPMorgan and Fidelity, along with major advertising deals and interest in cover story features on artists including Drake, Megan Thee Stallion, Elton John, and Camila Cabello. Investors say they were told Gomez, who has more than 400 million Instagram followers, would serve as head of marketing and actively promote the company.

What went wrong

The investors allege that none of these promises materialized. The mobile app was never developed, the partnerships did not exist, and the revenue-generating initiatives never launched. The lawsuit states that the company failed to meet basic obligations, including paying employees and vendors on time. "There was no legitimate enterprise in the works, much less a lucrative one," the complaint said. Investors say they were unaware of the company's troubles until The Cut published an exposé in September 2025 based on interviews with 14 current and former Wondermind employees. That report alleged that Gomez had distanced herself from the company soon after launch, that finances were dire partly due to Teefey's alleged substance abuse issues and erratic behavior, and that Pierson left Wondermind in 2023 following a power struggle with Teefey. Teefey allegedly tried to blame the company's problems on Pierson.

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.

Responses from the founders

During The Cut's reporting, Teefey defended herself and the company's mission.

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. Even more disappointing that the media is willing to amplify their lies.

Gomez had spoken about the company's vision during a 2022 appearance on Good Morning America alongside Teefey and Pierson.

We want there to be a community and a space where people can feel like they're okay and they're not alone.