What to Know
Selena Gomez launched her mental health company, Wondermind, in 2021, and nearly five years later, investors are claiming she never managed to deliver what she promised. After news broke last week that Selena and her mom, Mandy Teefey (along with their former business partner, Daniella Pierson), are being sued for fraud, Selena is fighting back, denying all the allegations that she lied to investors in order to get their money for her project.
Signs of trouble in the company started showing last year.
In September 2025, current and former employees at Wondermind claimed that the company was imploding in a story published by The Cut. At the time, those in the know claimed that Selena’s mother was dealing with a substance abuse problem, and Selena had distanced herself from the company in order to get distance from her family. Around the same time, sources said that Mandy fired Daniella.
Then came the lawsuit from the investors.
On August 13, TMZ reported that investors believed Selena was all in on promoting the company when they first launched, and that convinced them that it was a good idea to invest more than $1 million in Wondermind. But now, they’re claiming Selena dropped the ball, and that Daniella isn’t as prolific a business woman as she purported herself to be.
“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 lawsuit claimed.
The investors said that the company kept them in the dark about how it was doing until The Cut article was published, and are suing for securities fraud, accusing Selena of “abject dereliction of her duties to the company.”
Furthermore, they also claimed that all the big plans that Selena, Mandy, and Daniella had for the company never ended up happening.
“The partnerships did not exist. The initiatives never materialized. The app was never built,” the lawsuit said.
Selena is calling the lawsuit ‘meritless.’
In a statement to People, Selena’s lawyer, Mathew S. Rosengart, shut down the claims being made by the investors.
“The allegations that Selena Gomez engaged in any way whatsoever in any purported ‘fraud’ or other wrongdoing are completely meritless, both factually and legally,” he said. “We will vigorously defend these false allegations and indeed are filing a motion to dismiss the baseless claims against her.”
According to Forbes, Wondermind laid off 60% of its employees after they said they hadn’t been paid in weeks. At the time, Selena’s mom said she’d taken out a personal loan to help the company’s cash flow problems, but it sounds like they are still struggling more than a year later.
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