Photo Credit: Getty Images
Selena Gomez is facing a legal battle involving Wondermind, the mental health startup she co founded, after investors accused the company's leadership of misleading them about its financial position, business prospects and plans.
Five investors filed a lawsuit on Aug. 13, alleging that they invested approximately $1.2 million in Wondermind in 2022 after being led to believe that Gomez's celebrity profile and involvement would help establish the company as a successful mental health platform.
Wondermind was launched in 2021 with the stated goal of providing users with accessible resources to support their mental fitness. Gomez was identified as a co founder, chief impact officer and head of marketing, while her mother, Mandy Teefey, served as co chief executive officer. Entrepreneur Daniella Pierson was also involved in the company.
According to the lawsuit, investors believed Wondermind had significant potential and was valued at approximately $95 million in 2022. They allegedly expected the company to develop major corporate partnerships, advertising opportunities, celebrity features and a mobile application.
The investors now claim those expectations were not fulfilled.
The lawsuit alleges that promised partnerships never materialized, the proposed app was never developed and the company struggled internally while investors were allegedly kept unaware of the extent of its difficulties. The plaintiffs say they only learned about the startup's problems after a September 2025 report by The Cut brought the situation to wider public attention.
The investors have accused Gomez, Teefey and Pierson of securities fraud, common law fraud and breach of contract, among other claims. They are seeking the return of their investments, damages and legal fees.
The lawsuit also raises questions about the role Gomez played in Wondermind. Investors allege that they expected the singer and actress to use her enormous social media presence and public profile to promote the company and help expand its reach.
The case also names Teefey and Pierson. According to the allegations, the three collectively held nearly 90 percent of the company's shares.
Pierson has denied the accusations against her. In a statement, she said she welcomed the opportunity to present documentation and financial records that she believes will establish the facts. She also denied using investor money for personal expenses.
The lawsuit follows reports of internal difficulties at Wondermind and adds another layer of scrutiny to the challenges faced by celebrity backed businesses.
For Gomez, who has publicly advocated for mental health awareness, the dispute puts one of her major business ventures under an uncomfortable spotlight. However, the allegations contained in the lawsuit have not been proven in court.
Neither Gomez, Teefey nor Wondermind had immediately provided a response to the allegations when the lawsuit became public.
The case is now set to determine whether the investors' claims can withstand legal scrutiny and whether those involved in Wondermind will ultimately be held responsible for the company's alleged failures.
