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Selena Gomez and other founders of mental health startup Wondermind have been sued by investors who allege they were misled about the company's prospects and the singer's involvement.
Five investors, acting through two investment companies, filed the lawsuit Thursday in federal court in Delaware against Wondermind Global, Gomez, her mother Mandy Teefey and former business partner Daniella Pierson.
The plaintiffs said they invested nearly $1.2 million in Wondermind's Series A preferred stock in 2022 after receiving assurances about the company's leadership, planned products and potential sources of revenue. The startup was valued at $95 million when it sought the investment, according to Bloomberg.
Founded in 2021, Wondermind describes itself as a mental fitness platform offering mental health content, podcasts, worksheets and a newsletter.
According to the complaint, Gomez was presented as a co-founder, chief impact officer and head of marketing. The investors allege they were told she would be closely involved in developing and promoting the company, including through her social media following.
Investors said Wondermind would draw on an audience of more than 500 million people across Gomez's social media channels, according to Forbes.
The lawsuit also claims investors were told Wondermind had secured or was developing partnerships with major employers, including JPMorgan and Fidelity, and was preparing advertising deals, celebrity cover stories and a mobile application. The complaint alleges none of those initiatives materialized and the app was never built.
The investors further claim Wondermind failed to disclose worsening financial and operational difficulties and that they learned about many of the problems only after a media investigation was published in September 2025.
This April, Teefey told investors an escrow account had been created to repay them, though the lawsuit alleges no such account existed, according to reporting cited by USA Today.
The lawsuit includes claims of securities fraud, common-law fraud, breach of contract and other alleged violations. The plaintiffs are seeking to unwind their investments or recover damages, plus interest, legal costs, and attorneys' fees. According to Forbes, the plaintiffs have requested a jury trial.
Pierson has denied the allegations and said she welcomed the opportunity to present documents and financial records supporting her position. She also denied using investor money for personal expenses.
Gomez, Teefey and Wondermind have not publicly responded to the lawsuit. The allegations have not been proven in court.
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