Selena Gomez and mother Mandy Teefey reportedly in legal trouble over mental health startup

As per reports, Selena Gomez and her mother, Mandy Teefey have been sued for alleged fraud related to their mental health startup Wondermind. The lawsuit has been reportedly filed by investors who has also named their former business partner, Daniella Pierson.

Selena Gomez and mother Mandy Teefey accused of fraud

Selena Gomez and Mandy Teefey have been named as defendants, along with their former business partner Daniella Pierson in a lawsuit that has accused them of four counts of fraud. They have been sued in relation to their mental health startup Wondermind.

According to reports, the plaintiffs were investing entities Wondermind SRS 44 LLC and Bespoke Wondermind SPV I LLC, who had invested in the company back in 2022 and and were allegedly cheated by the women. Their claim state that the three women misled them falsely claiming that the "Company had the infrastructure, leadership, and resources necessary for the Company to launch into a profitable, one-of-its-kind mental health and wellness platform".

The alleged investors further claim they were made to believe that Selena would be the head of marketing of the company while Daniella "secured institutional employer partnerships. Their accusation against the actress and singer also state that she "purported to sign a contract obligating her to perform". They claim that the partnership never existed.

A company that collapsed

Selena Gomez's Wondermind reportedly collapsed due to cash crunches that led to mass layoffs. "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 plaintiffs said in their lawsuit.

Allegedly, the investors learned about the state of the start up in an article published in the Cut back in September 2025 which prompted them to take the legal step. The article also informed them about Mandy Teefey's alleged substance abuse.

Wondermind launched in 2021 and began its journey aiming to de-stigmatise mental health using digital media and other wellness resources. The company could not succeed and have now been slapped with a massive lawsuit where the plaintiffs demand close to $1.2 million in investments and recover damages besides a jury trial.

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