Selena Gomez faces fraud claims over her mental health startup

Selena Gomez is facing a legal headache over Wondermind, the mental health company she co-founded with her mother, Mandy Teefey, and Daniella Pierson.

Two investor entities have filed a securities fraud and breach of contract lawsuit against Gomez, Teefey and Pierson, alleging that nearly $1.2 million was invested in Wondermind based on what they claim were false representations.

According to court documents obtained by E! News August 13, the investors allege Wondermind’s leadership misrepresented Gomez’s expected involvement, among other claims.

“Gomez purported to sign a contract obligating her to perform and then ignored it,” the complaint read. “The partnerships did not exist. The initiatives never materialized. The app was never built.”

The lawsuit further alleges that investors were left unaware of the company’s alleged problems for years.

The complaint points to media reports about turmoil at Wondermind, including a September 2025 The Cut article containing allegations against Teefey, which she has denied, and an August 2025 Forbes report about tensions that allegedly resulted in Pierson leaving the company.

Pierson’s spokesperson pushed back on the characterization of her departure.

“Leaving Wondermind was a very difficult decision,” the spokesperson said, adding that Pierson “was proud of what they had built in the time there.”

E! News has reached out to representatives for Gomez, Teefey and Pierson for comment but has not received responses.

Gomez, Teefey and Pierson launched Wondermind in 2021 with a mission to create a supportive space for conversations around mental health.

“Something I’ve always tried to do in my career is make sure I lend my voice to places where it matters,” Gomez told Entrepreneur in 2021. “And I have to give my mom credit for that because she taught me everything.”

The lawsuit remains an allegation, and no wrongdoing has been established against Gomez or the other defendants.