Selena Gomez and Mother Sued for Allegedly Defrauding Wondermind Investors

Selena Gomez and her mother, Mandy Teefey, face a new securities fraud lawsuit filed by investors who accuse the co-founders of deceiving them to secure more than $1 million in funding for the mental health startup Wondermind while the company was allegedly collapsing internally, according to court documents obtained by TMZ and reported by Forbes and Us Magazine.

Lawsuit Details and Investor Claims Against Wondermind

Plaintiffs Wondermind SRS 44 LLC and Bespoke Wondermind LCC filed the court action, claiming Gomez and Teefey misrepresented the startup’s infrastructure, leadership, and operational resources needed to launch a profitable platform. According to the court filing cited by Us Magazine, investors alleged they poured over $1 million into the enterprise based on those representations.

For three years, 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 court documents state, as reported by Us Magazine.

The investors stated they only learned about the severe struggles at Wondermind through a 2025 exposé published by The Cut. That magazine report described the multimedia platform as being in a state of utter disarray, while also detailing internal challenges. The lawsuit alleges that Teefey mismanaged the firm, and that Gomez exhibited an abject dereliction of her duties to the company, according to Us Magazine. The plaintiffs are seeking unspecified damages, which include a return on their financial investments.

Background and Corporate Turbulence at the Startup

Gomez, Teefey, and Daniella Pierson co-founded Wondermind in 2022 as a multimedia platform designed to offer mental health support and resources. At the launch, Teefey outlined a vision to create a comprehensive space for mental fitness, balancing education, media, and self-reflection without a clinical tone.

However, the company faced major operational hurdles in May 2025, when news broke that Wondermind reportedly laid off 60 percent of its staff amid mounting financial issues. At the time of those layoffs, a spokesperson for Wondermind told Forbes that the firm was transitioning into a new chapter and had successfully rectified any outstanding debts.

During the 2025 reporting by The Cut, anonymous employees raised concerns regarding Teefey’s conduct in the office. Teefey vehemently denied those allegations at the time, telling Us Magazine in a statement that the claims were absolutely false and describing the accusations as coming from disgruntled employees spreading lies. Neither Gomez nor Teefey have issued a public response regarding the newly filed investors’ lawsuit.