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Executive producer Mandy Teefey, left,\u00a0and her daughter Selena Gomez attend the premiere of Netflix\u2019s show \u201c13 Reasons Why\u201d at Paramount Pictures in Los Angeles on March 30, 2017.<\/p>\n
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A 2025 controversy surrounding Selena Gomez\u2019s embattled mental health startup is resurfacing after investors sued the actress and pop star for alleged fraud on Wednesday.<\/p>\n
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Filed in federal court in Delaware, investors are suing Gomez over her failed mental health startup Wondermind, which she launched with her mother, Mandy\u00a0Teefey, and Daniella Pierson<\/a>. The plaintiffs, a group of five investors, allege that the trio defrauded them out of almost $1.2 million after misleading them about the strength of the company and the extent of Gomez\u2019s involvement in the business.\u00a0<\/p>\n Article continues below this ad<\/p>\n The lawsuit follows a scathing article about Wondermind and its founders that the Cut published last September<\/a>, which chronicles the company\u2019s silent, yearslong spiral due to alleged misconduct by its founders. Los Angeles-based<\/a> Wondermind did not respond to a request for comment.\u00a0<\/p>\n \u201cThere was no legitimate enterprise in the works, much less a lucrative one,\u201d the lawsuit said. The plaintiffs include Brent Saunders, a longtime healthcare CEO who was also a former board member<\/a> of Cisco and an independent director with\u00a0BridgeBio Pharma, both Bay Area-based companies.<\/p>\n In 2021, Gomez launched the app Wondermind<\/a>, a platform for mental health content. The platform has backing from Serena Williams\u2019 venture capital fund Serena Ventures<\/a>, which is\u00a0based in San Francisco<\/a>. According to Wondermind\u2019s LinkedIn<\/a>, the company had a $100 million prelaunch valuation.<\/p>\n Wondermind publishes wellness\u00a0podcasts and tips for managing anxiety, and it even boasts an advisory board of licensed mental health providers. Gomez, who\u2019s long been open about her personal struggles with mental health, is listed as a co-founder and \u201cChief Impact Officer.\u201d However, the company\u2019s day-to-day operations fell under the management of Teefey after Pierson\u2019s departure, according to the lawsuit and the Cut.<\/p>\n Article continues below this ad<\/p>\n The lawsuit alleges that Gomez\u2019s involvement was limited to her name on the masthead and accuses Teefey and Pierson of misleading investors about how involved Gomez would be, since her global fanbase would be key to building the business. A prelaunch investment scheme presented to potential investors in 2022 touted Gomez\u2019s \u201c400 million followers\u201d and Pierson\u2019s prior purported success in a media startup as key to an estimated valuation of more than $4 billion.<\/p>\n In December 2022, Pierson wrote in an email to potential investors that the company had achieved $1.7 million in revenue in five months \u201cwithout a proper sales team.\u201d Plaintiffs allege in the lawsuit that these representations pushed them to invest nearly $1.2 million.\u00a0<\/p>\n But the lawsuit alleges that Gomez distanced herself from the business due to \u201cseveral undisclosed personal disputes\u201d with her mother, and Wondermind\u2019s alleged turmoil would eventually be revealed in a the Cut magazine piece with the headline: \u201cWhat Happened at Wondermind? Selena Gomez and her mother, Mandy Teefey, flipped their mental-health journeys into a buzzy start-up. It all fell apart.\u201d\u00a0<\/p>\n Investors said it was the first time they became aware of the extent of the company\u2019s alleged struggles.<\/p>\n Article continues below this ad<\/p>\n Allegations largely surrounded personal disputes among the founders, Pierson\u2019s early ouster and Teefey\u2019s alleged mismanagement, which the Cut revealed<\/a> was in part due to an alleged substance abuse disorder. The investors also allege that Pierson had misappropriated the plaintiff\u2019s funds for \u201cher lavish lifestyle,\u201d including rent on a $60,000-per month New York City apartment, and that over three years, the company took active steps in concealing the extent of the alleged disarray.<\/p>\n Access our new app with ad-free reading, curated maps and more.<\/p>\n![\"Promo](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/1785331150_592_rawImage.jpg\")
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