Investors are seeking $1.2 million in a lawsuit alleging they were misled about Gomez’s role in the mental health startup. Her lawyer calls the claims meritless.
Selena Gomez is pushing back against allegations that she misled investors in her mental health startup Wondermind, days after two investment groups filed a federal lawsuit accusing the company’s founders of fraud.
The investors are seeking to recover their $1.2 million investment, along with damages and legal fees. Gomez’s attorney, Mathew S. Rosengart, has rejected the allegations and said the claims against her are “completely meritless.”
“We will vigorously defend these false allegations,” Rosengart told People, adding that Gomez’s legal team is filing a motion to dismiss the claims.
The lawsuit was filed Thursday in the US District Court in Delaware by investment groups Wondermind SRS 44 and Bespoke Wondermind SPV.
What are investors accusing Wondermind of?
The lawsuit names Wondermind’s three principals: Selena Gomez, her mother Mandy Teefey, and former business partner Daniella Pierson.
According to the plaintiffs, the founders “falsely represented” that Wondermind had the infrastructure, leadership, and resources needed to build a profitable mental health and wellness platform.
The investors allege that the company overstated:
- Teefey’s leadership capabilities
- Pierson’s business experience
- Gomez’s level of involvement in developing and promoting Wondermind
- Planned corporate partnerships
- Advertising opportunities
- The development of a mobile app
The lawsuit specifically claims that proposed partnerships with J.P. Morgan and Fidelity never materialised and that a planned mobile application was never built.
The plaintiffs further allege that investors were not informed about the company’s deteriorating financial condition.
These allegations have not been proven in court.
Wondermind’s financial troubles
Concerns about Wondermind’s financial health had already surfaced before the lawsuit.
In September 2025, New York magazine’s The Cut published a report questioning the company’s leadership, finances and internal state.
Then, in May 2026, Forbes reported that Wondermind had failed to pay vendors and 15 employees in March before laying off all but four members of its staff.
A source cited by People disputed that portrayal, saying Gomez had invested millions of dollars into Wondermind over the years and put in additional money after learning about its latest financial difficulties.
According to the source, Teefey also took out a personal loan to invest in the company’s future.
Teefey has not publicly commented on the lawsuit.
Daniella Pierson denies allegations.
Pierson, who served as co-CEO alongside Teefey before leaving Wondermind in 2023, has also rejected the allegations.
Speaking to The New York Times, Pierson said she “categorically denies the allegations”, including claims that she used investor funds for personal expenses.
She said she welcomed the opportunity to provide documentation and financial records to establish what happened.
How Wondermind began
Wondermind launched in 2021 with Gomez, Teefey and Pierson positioning the company as a mental health media and wellness platform focused on helping people improve their “mental fitness.”
Gomez’s involvement brought considerable attention to the startup, particularly because of her huge social media following and public advocacy around mental health.
The company initially sought $5 million in investment, according to The New York Times. During its first fundraising efforts, the founders reportedly presented Wondermind as having an initial valuation of around $95 million, with the potential to eventually become a company worth more than $4 billion.
The lawsuit now puts those early expectations under scrutiny.
Gomez disputes the fraud allegation.
Gomez’s legal team maintains that she did not engage in fraud or other wrongdoing.
The dispute is therefore centred on a much more specific question: what investors were told about Wondermind, its founders, its planned partnerships and Gomez’s involvement when they invested their money.
For now, the accusations remain allegations. The court will determine whether the investors’ claims can proceed and, ultimately, whether any wrongdoing occurred.
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Selena Gomez. Photo: Getty
Source: Inc
