Selena Gomez sued by investors for alleged fraud over mental health startup Wondermind

The lawsuit

Five investors filed a lawsuit on August 13, 2026, in a federal court in Delaware, accusing Selena Gomez, her mother Mandy Teefey, and former business partner Daniella Pierson of fraud and breach of contract over their mental health startup Wondermind Global. The plaintiffs, based in New York and Florida, include Brent Saunders, chief executive of eye-health company Bausch + Lomb. They seek to recover approximately $1.2 million invested in 2022, along with costs and damages, and have requested a jury trial. The complaint describes what the investors call Gomez's "abject dereliction of her duties," leaving the company in a "state of financial calamity." Gomez's representatives did not immediately provide comment when contacted by media outlets.

What was promised

Wondermind was founded in 2021 by Gomez, Teefey, and Pierson as a multimedia platform offering users "simple and practical ways to prioritize mental wellbeing every day." The startup aimed to become "the world's first mental health ecosystem" and to "democratize and destigmatize mental health for all." Gomez held the titles of co-founder, "chief impact officer," and head of marketing. The company claimed a valuation of $95 million in 2022 and told investors there would be partnerships with firms such as JPMorgan, advertising deals, celebrity cover stories, and a mobile app. According to the complaint, none of these materialized. The investors stated they invested $1.2 million expecting Gomez to leverage her social media following of over 500 million to grow the business.

What went wrong

The lawsuit alleges that Gomez failed to fulfil her contractual obligations to the company.

“Gomez purported to sign a contract obligating her to perform and then ignored it.”

The plaintiffs also accuse Wondermind of failing to meet basic obligations such as paying employees and vendors on time, and state there was "no legitimate business project underway, let alone a profitable one."

“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.”

Pierson, who left the company in 2023, was separately accused of using investor funds to pay her New York rent. She denied these accusations, stating she could provide "concrete documents and financial records establishing the facts."

How it came to light

The investors said they were unaware of the company's difficulties until September 2025, when an investigative article in The Cut detailed internal problems and longstanding personal difficulties between Gomez and her mother. The article described how these relational tensions explained why Gomez had not fulfilled her contractual obligations. Gomez, who publicly discussed her own mental health struggles including bipolar disorder, is currently listed as co-founder on Wondermind's website, below her mother, who now holds the chief executive role following Pierson's departure. Gomez, 34, rose to fame as a child actor on Disney Channel before moving into pop music. She also founded cosmetics company Rare Beauty in 2020, and her net worth is estimated at nearly $1 billion to $1.3 billion, depending on the source.