Looks Like Selena Gomez and Her Mom Are Defrauding Investors

Remember that awesome, one-of-a-kind mental health and wellness platform that Selena Gomez launched? Me neither. Maybe because it never made it out of beta, or maybe because it never existed to begin with. On Thursday, TMZ reported that Gomez, her mom Mandy Teefey, and their former business partner Daniella Pierson were all named defendants in a lawsuit over their maybe fraudulent mental health startup, Wondermind.

The suit accuses the women of four counts of fraud and a laundry list of business no-nos. Namely, plaintiffs were misled into believing that Gomez would be actively participating in building the company (she wasn’t), that Pierson had secured partnerships with JPMorgan and Fidelity (she hadn’t), and that “a full slate of revenue-generating initiatives” was “already underway” (you guessed it, they weren’t). The plaintiffs, who poured $1.2 million into the startup, claimed 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,” per the complaint.

But what exactly is Wondermind, besides a sketchy, for-profit, mental health company? Based on the allegations, the business hinged on the development of some sort of wellness app that, of course, was never developed.

The startup’s mess became public last year, after Forbes reported that the company couldn’t pay employees. A bombshell report in the Cut also detailed the mayhem that was going on behind closed doors, including Gomez’s mother’s erratic behavior—such as sleeping/living in the office, incoherent late-night messages, possible substance abuse issues, etc.

After the plaintiffs learned of the reality, they sent a notice of rescission demanding the return of their money, but never received it. In April, they demanded rescission again and were told by Teefey that she had already returned the money. They responded that this was not the case, to which Teefey replied that it was “a question for Selena’s legal team.”

In 2025, Forbes rescinded the billionaire status it had previously bestowed upon Gomez amid the Wonderland controversy, and later that year, in an interview with the Hollywood Reporter, Gomez claimed she doesn’t “really pay much attention” to her wealth and that the designation hadn’t changed “anything” about her. “And also, personally, I just don’t think it’s anyone’s business.” Except, perhaps, your investors.

Anyways, next time maybe it’s not a good idea to make a for-profit mental health company. Food for thought.

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