Selena Gomez, mother sued over alleged $1m Wondermind investment fraud

Singer and actress Selena Gomez and her mother, Mandy Teefey, are facing a lawsuit from investors who allege they were misled into investing more than $1 million in their mental health company, Wondermind.

The lawsuit was filed by Wondermind SRS 44 LLC and Bespoke Wondermind LLC against Wondermind Global, Gomez, Teefey and former business partner Daniella Pierson.

The investors allege that Gomez and Teefey made misleading representations about Wondermind’s infrastructure, leadership and resources needed to turn the company into a profitable mental health platform.

According to the lawsuit, the investors committed more than $1 million after Gomez publicly promoted Wondermind through television appearances and interviews. They further claim that Gomez portrayed herself as deeply involved in the company but allegedly became less active after the investment was made.

The investors also accused Pierson of misrepresenting her previous business achievements and the potential returns they could expect from their investment.

They alleged that the company’s founders and executives failed to disclose its financial and operational difficulties for years, claiming that Wondermind was struggling to meet basic obligations, including payments to employees and vendors.

The investors said they only became aware of the alleged problems after a September 2025 investigation by The Cut described Wondermind as being in a “state of utter disarray.”

The report reportedly contained allegations of mismanagement involving Teefey, including claims of substance abuse, as well as allegations concerning Gomez’s involvement in the company and her efforts to distance herself from the business.

Teefey has denied the allegations, including claims of substance abuse and poor management, describing them as lies spread by disgruntled former employees.

“It’s unfortunate that a few disgruntled employees with an ax to grind can spread lies about me and distort the truth.”

The investors further claimed that when they confronted Teefey about the allegations, she attempted to shift blame to Pierson, who had already left the company.

They are suing for securities fraud and seeking unspecified damages, including the return of their investments and additional financial compensation.

The allegations in the lawsuit have not been proven in court.