Selena Gomez is facing a federal lawsuit from investors who accuse her, her mother Mandy Teefey and former business partner Daniella Pierson of misleading them about the prospects and operations of their mental health startup, Wondermind.
The lawsuit, filed Aug. 13 in federal court in Delaware, alleges that investors invested nearly $1.2 million in Wondermind after being given assurances about the startup’s infrastructure, leadership, revenue plans, and Gomez’s expected involvement. The plaintiffs are seeking the return of their investment, damages and legal fees.
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According to the complaint, Gomez was expected to play an active role in building Wondermind and to serve as its head of marketing, using her celebrity profile and social media reach to promote the company. Investors allege that promised corporate partnerships and revenue-generating initiatives never materialized and that a planned app was never built.
The investors also allege they were not informed as Wondermind experienced growing financial and operational problems. They say they learned about the company’s difficulties after a 2025 investigation by The Cut, which described serious management and financial issues at the startup.
Wondermind was launched in 2021 by Gomez, Teefey and Pierson as a platform focused on “mental fitness.” The company later faced financial difficulties. Forbes reported in May 2025 that Wondermind had laid off about 60% of its 15-person workforce, while employees said they had gone weeks without pay.
The lawsuit also points to alleged tensions between Gomez and her mother and disputes involving Pierson, who left the company in 2023. The plaintiffs contend that these issues contributed to the startup’s deterioration. The allegations have not been proven in court.
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Gomez has strongly rejected the allegations. Her attorney, Mathew Rosengart, called the claims “completely meritless” and said the legal team plans to file a motion seeking dismissal of the case. Pierson has also denied the allegations, while Teefey has not publicly responded to the lawsuit.
The case puts renewed attention on the risks faced by celebrity-backed startups, particularly when investors rely on a founder’s public profile and promised business relationships while evaluating an early-stage company.