What Is Wondermind? Selena Gomez’s Mental Health Startup Lawsuit Explained

Selena Gomez is being sued by investors who claim she committed fraud involving duties related to her mental health start-up, Wondermind Global.

According to the legal documents, investors for the company filed a lawsuit in Delaware to sue Selena, her mother Mandy Teefey, and their former business partner Daniella Pierson. They are seeking a jury trial.

What is Wondermind?

Wondermind was co-founded by Selena, Mandy, and Daniella in November 2021 as a digital mental health media startup and “mental fitness” platform. The company had a plan to create “tangible tools” to support practicing mental health by providing online content aimed at generating conversations and support for mental health.

Who filed the lawsuit, and how much did they invest?

The plaintiffs, including the two companies Wondermind SRS 44 LLC and Bespoke Wondermind LLC, are alleging they invested nearly $1.2 million in Wondermind Global and claim the defendants “falsely represented that the company had the infrastructure, leadership, and resources necessary for the company to launch into a profitable, one-of-its-kind mental health and wellness platforms.”

What do the investors allege about Selena’s promised involvement?

According to the documents, the plaintiffs are saying they were told Selena, “one of the most famous women on earth with a billion-dollar brand and a platform unmatched in social media” would be an active participant in the building of the company as the head of marketing.

Later in the document, they say Selena supposedly signed a contract “obligating her to perform and then ignored it.”

What projects and partnerships allegedly never materialized?

They also claim they were told co-CEO Daniella Pierson “was a $200 million executive whose prior businesses generated $40 million a year and who had already secured institutional partnerships with JPMorgan and Fidelity” along with a slate of promising “revenue-generating initiatives” such as celebrity cover stories, an app, and advertising deals.

“These representations were false,” alleges the lawsuit, going on to claim none of the proposed initiatives manifested, including the app not being built.

For three years, they say the company “quietly collapsed around them,” and no one informed the investors that their money was “funding the collapse.” Instead, they are alleging they only learned about the collapse from a September 2025 article published by The Cut.

The article reportedly claimed Mandy‘s “apparent substance abuse disorder and her gross mismanagement of the company” along with Selena‘s “abject dereliction of her duties” and “her active efforts to distance herself” from the start-up, led to an “executive power struggle” at Wondermind that ended with Daniella getting ousted and leaving a “leadership void.”

Mandy previously denied the drug abuse allegations.

What has Selena’s lawyer said?

On Saturday (August 15), Selena‘s lawyer released a statement on her behalf, slamming the lawsuit.

“The allegations that Selena Gomez engaged in any way whatsoever in any purported ‘fraud’ or other wrongdoing are completely meritless, both factually and legally,” her litigator Mathew S. Rosengart shared with People. “We will vigorously defend these false allegations and indeed are filing a motion to dismiss the baseless claims against her.”

Selena‘s mother has not yet commented on the lawsuit, while Daniella ““categorically denies the allegations against her and welcomes the opportunity to present concrete documentation and financial records that establish the facts,” in a statement to The New York Times.

What happens next?

The lawsuit is alleging multiple counts of securities fraud, common law fraud, breach of contract (along with a rescission count to cancel or undo the contract), and more.

Stay tuned to Just Jared for more updates.

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