Selena Gomez and her mother face $1.2M investor fraud claims over Wondermind: Reports
NEW YORK CITY, NEW YORK: Selena Gomez and her mother, Mandy Teefey, are facing legal trouble after investors accused them of fraud related to their mental health startup, Wondermind.
The 'Only Murders in the Building' actress and Teefey were named as defendants after investors alleged that they were misled about the company's infrastructure, leadership and business prospects. Gomez's former business partner, Daniella Pierson, was also named as a defendant in the lawsuit.
Selena Gomez and Mandy Teefey face Wondermind fraud lawsuit
The issue was raised by investors who invested $1.2 million in Wondermind in the summer of 2022. According to the claim, Selena Gomez, Mandy Teefey and Pierson "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" at the time of the investment.
The investors allegedly believed that Gomez would "actively" participate in the company and serve as its "head of marketing." They also claimed they were led to believe that Pierson had "already secured institutional employer partnerships with JPMorgan and Fidelity." Another claim centered on a revenue-generating initiative that investors were allegedly told was "already underway.”
🇺🇸 Selena Gomez’s mental health startup got dragged into court, and it’s ugly.
— Mario Nawfal (@MarioNawfal) August 14, 2026
Investors who poured almost $1.2 million into Wondermind are suing her, her mom, and the co-founder for fraud.
They say they were promised Selena would actually show up as head of marketing, that an… pic.twitter.com/xcVfUxXHlV
As per an Entertainment Weekly report, Gomez signed "a contract obligating her to perform," but investors alleged that she failed to fulfill her duties. They also claimed that "the partnerships did not exist" and that "the initiatives never materialized."
The investors further alleged that "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." They claimed they did not learn that Wondermind was struggling until The Cut published an article in 2025 describing the company as being in a "state of utter disarray."
The investors also accused the defendants of using investor funds to "fund her lavish lifestyle," including paying rent in New York City.
Selena Gomez returns for 'Only Murders in the Building' Season 6
Amid the legal claims surrounding Wondermind, Gomez is also working on 'Only Murders in the Building' Season 6 alongside Martin Short and Steve Martin.
The upcoming season is expected to consist of 10 episodes, with the trio reportedly in the United Kingdom to film the series. Major cast additions include Martin Freeman, David Tennant, Jodie Whittaker, Simone Ashley and Nicola Coughlan, who will also appear in the series.
A release date for the upcoming season has not yet been announced.
