Selena Gomez hit with lawsuit over mental health startup
What's the story
Investors in Selena Gomez's mental health startup, Wondermind, have filed a lawsuit against the actor-singer. They allege that they were misled about the company's prospects and Gomez's role in its development and promotion. The lawsuit was filed on Thursday in federal court in Delaware by five investors who claim to have invested nearly $1.2 million into Wondermind in 2022.
Legal action
Gomez was co-founder, chief impact officer, and head of marketing
The investors are seeking to recover their investments, damages, and legal fees from Gomez, her mother and Wondermind co-chief executive Mandy Teefey, former business partner Daniella Pierson, and the company itself.
Launched in 2021 as a platform for improving "mental fitness," Wondermind had Gomez listed as a co-founder, chief impact officer, and head of marketing.
Allegations
Investors expected Gomez would use celebrity status for the business
The investors allege that they were expecting Gomez to use her celebrity profile and social media following to help build the company.
They claim she failed to fulfill contractual duties, including helping develop and promote the business.
The lawsuit also alleges that investors were led to believe Wondermind had a $95 million valuation and would secure major corporate partnerships, advertising deals, and a mobile app.
Operational issues
Company allegedly failed to meet basic obligations
The investors further allege that the company failed to meet basic obligations, such as paying employees and vendors on time.
They claim they were not informed about the company's financial and operational problems for years, despite their money being used to fund the business.
The lawsuit cites a report by The Cut in September 2025, which detailed internal disputes within Wondermind as a source of information about these issues.
Denial
Pierson has denied the allegations
Pierson, who left Wondermind in 2023, has denied the allegations against her. She said she would provide documentation and financial records to establish the facts and denied using investor money for personal expenses.
The lawsuit accuses the defendants of securities fraud, common law fraud, and breach of contract, among other claims.
Gomez, Teefey, and Wondermind have not yet responded to requests for comment on these allegations.