Selena Gomez and her mental health startup accused of fraud

Pop star Selena Gomez, her mother Mandy Teefey, and co-founder Daniella Pierson are facing a federal lawsuit alleging investor fraud related to their mental health startup, Wondermind. The complaint, filed in Delaware on Thursday by two investment companies representing five investors, claims they were misled about the company's operational infrastructure, leadership, and promised initiatives. Investors, who put nearly $1.2 million into Wondermind in 2022, contend they were falsely assured of partnerships with major companies like JPMorgan and Fidelity, advertising deals, celebrity cover stories, and the development of a mobile application, none of which reportedly materialized.

The lawsuit specifically alleges securities fraud, common-law fraud, and breach of contract, asserting that the company quieted about its collapse for three years while investors' money funded the failing venture. A key aspect of the allegations centers on Selena Gomez's role as "chief impact officer" and "head of marketing". Investors claim they were led to believe Gomez would be intimately involved and leverage her extensive social media following to promote the company, but she allegedly "ignored" her contractual obligations, partially due to "personal struggles with her mother".

The plaintiffs reportedly discovered the company's financial and operational troubles through a September 2025 media investigation. Daniella Pierson has denied the allegations, stating she is prepared to provide documents to support her position, while Gomez, Teefey, and Wondermind have not yet publicly responded to the suit. The allegations made in the lawsuit have not been proven in court.