Flonique Guimary

Selena Gomez sued over alleged fraud involving mental health startup

Article (news)

Alyana De Guzman

Push Team

Singer-actress Selena Gomez, her mother Mandy Teefey, and former business partner Daniella Pierson are facing a lawsuit over allegations involving Wondermind, the mental health startup they launched in 2021.  According to Reuters, on August 13, investors who poured nearly $1.2 million (around ₱73.7 million) into the company filed the lawsuit in federal court in Delaware, claiming they were misled about Wondermind’s business and the roles of its leaders. Wondermind was created as a media platform focused on mental fitness, with the goal of providing users with accessible ways to prioritize their mental well-being. Its website describes the platform as offering “easy, doable ways to put your mental fitness first every day,” while directing visitors to sign up for a newsletter. The investors, who in this case are the plaintiffs, allege that they were told Selena would take an active role in developing and promoting the company as its head of marketing. They claim, however, that several commitments were not fulfilled, including the development of a mobile application. In the lawsuit, the plaintiffs said, “Gomez purported to sign a contract obligating her to perform and then ignored it.” They further alleged, “There was no legitimate enterprise in the works, much less a lucrative one,” while claiming that the company failed to meet “even its most basic obligations, such as timely paying its employees and vendors.” Moreover, the investors claim they were unaware of the extent of Wondermind’s alleged financial problems until an online news report published in September 2025 brought the company’s difficulties to their attention. <div> </div><div><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1786697995776Screenshot 2026-08-14 165710.png" style="width:960px" class="fr-fic fr-dib" width="960"/>Mandy Teefey, singer and actress Selena Gomez and entrepreneur Daniella Pierson.  </div>According to Forbes, Selena, Mandy, Daniella, and Wondermind itself are accused of securities fraud. The allegations include claims that investors were given misleading information regarding Wondermind’s finances and the extent of Selena’s involvement as the company’s “head of marketing.” The lawsuit also alleges that investors were given misleading representations regarding Mandy’s ability to lead the company and Daniella’s professional background. The plaintiffs claim the three women allegedly knew that certain company initiatives “did not exist, were not feasible, or were due to be obviated by the Individual Defendants’ use of investor funds for non-business purposes.”  Daniella is separately named in another securities fraud claim, with investors alleging that she made false or misleading statements about Wondermind’s projected growth to encourage them to purchase stock. She also faces separate allegations of &quot;conversion and unjust enrichment,&quot; with the plaintiffs claiming that investor funds were allegedly misappropriated for personal use. All of the defendants are accused of fraudulently inducing the plaintiffs to invest in Wondermind, while the company itself is facing a breach-of-contract claim. The plaintiffs are now seeking to recover their investments, along with legal fees. Following the legal matter, Daniella has denied the allegations against her. A representative for her shared a statement with USA TODAY, stating: “Daniella categorically denies the allegations against her and welcomes the opportunity to present concrete documentation and financial records that establish the facts. To be clear, she has never used investor funds for personal expenses. Quite the opposite: Daniella invested her own money into the business and did not draw a salary from the company.” Selena and Mandy have yet to issue public statements regarding the lawsuit.

Selena Gomez, her mother Mandy Teefey, and former business partner Daniella Pierson are facing a lawsuit from investors who allege they were misled about Wondermind's finances, operations, and business plans.

Selena Gomez, her mother Mandy Teefey, and former business partner Daniella Pierson are facing a lawsuit from investors who allege they were misled about Wondermind's finances, operations, and business plans.