Selena Gomez sued by investors over mental health startup Wondermind

Selena Gomez and her mother, Mandy Teefey, are facing a lawsuit from five investors who claim they were defrauded into investing nearly $1.2 million in Wondermind, a mental health startup the singer co-founded in 2021 Source: BBC. The investors allege securities fraud, breach of contract, and other claims, saying Gomez failed to fulfill her marketing duties and that promised partnerships and an app never materialized Source: CNN.

The allegations

The lawsuit, filed in federal court in Delaware, claims Gomez "purported to sign a contract obligating her to perform and then ignored it" Source: TechCrunch. Investors say they were kept in the dark for three years while the company "quietly collapsed," only learning of its troubles after a September 2025 investigative story by The Cut Source: The Next Web. The complaint also alleges that Gomez, Teefey, and former co-founder Daniella Pierson collectively owned almost 90% of the company's shares Source: CNN.

The response

Pierson, who left Wondermind in 2023, denied the allegations in a statement, saying she "welcomes the opportunity to present concrete documentation and financial records that establish the facts" Source: CNN. Gomez, Teefey, and Wondermind have not yet responded to requests for comment Source: BBC.

What's next

The investors are seeking to recover their investments plus damages and legal fees Source: The Next Web. The case highlights the risks of celebrity-backed startups and the gap between marketing and substance Source: The Next Web. All claims remain unproven at this stage Source: The Next Web.