Selena Gomez and her mother have been accused of fraud in a lawsuit filed by investors of her mental health company Wondermind, alleging the organization’s founders ‘falsely’ represented the crumbling company as one poised for success.
Wondermind, founded by Selena Gomez, her mom Mandy Teefey and Daniella Pierson in 2021, came into controversy last year following a Cut article revealing alleged disarray behind-the-scenes of the company.
Now investors who poured in $1.2 million into the organization are seeking a jury trial in a new lawsuit filed against Gomez, her mother Teefey, Pierson, and Wondermind Global Inc.
The plaintiffs allege they were made to believe the company had been equipped with resources necessary to make it a success – but unbeknownst to them, Wondermind ‘was in the midst of collapse.’
Investors claim they were left in the dark about the problems going on in the company until a 2025 article by The Cut revealed the alleged troubles going on behind-the-scenes.
The Daily Mail has contacted representatives for Gomez and Teefey for comment.
Selena Gomez and her mother are now being sued after allegedly defrauding investors of their mental health company Wondermind with a ‘false’ representation of their business
In court documents obtained by The Daily Mail, the plaintiffs allege: ‘The Defendants falsely represented 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.
‘Among other misrepresentations, the Company, including through the Individual Defendants, who directly solicited the Plaintiffs’ investments, told the Plaintiffs three things: that Selena Gomez, one of the most famous women on earth with a billion-dollar brand and a platform unmatched in social media, would be actively building the Company as its head of marketing; that co-CEO Daniella Pierson was a $200 million executive whose prior businesses generated $40 million a year and who had already secured institutional employer partnerships with JPMorgan and Fidelity; and that a full slate of revenue generating initiatives, including advertising deals, celebrity cover stories, and a groundbreaking app, were already underway. These representations were false.’
The company was inspired by the founders’ respective mental health struggles but was hit by controversy in May 2025 when it emerged the platform was in financial crisis and had laid off 60 per cent of its employees.
In a The Cut expose, anonymous employees accused Wondermind CEO Teefey of erratic behavior, including ‘hallucinating’ a break-in at the business, sleeping over at the office for days and frequently getting injections of liquid Benadryl, which she allegedly claimed were vitamin IV drips.
One anonymous staff member called Teefey’s office her ‘drug den’ – while another claimed they were in her office when she snorted ‘what they believe was a line of Ritalin’, an ADHD medication.
Teefey told the publication she did ‘absolutely not’ snort Ritalin in her office, adding in a statement: ‘I started Wondermind because I wanted to help people with mental illness. It’s unfortunate that a few disgruntled employees with an ax to grind can spread lies about me and distort the truth.’
