Pop star Selena Gomez and her mother Mandy Teefey are being accused of fraud in a brand new lawsuit by traders who say they didn’t fulfil their duties to construct and promote her psychological well being startup.
Gomez and Teefey are accused of allegedly deceiving traders of their psychological well being startup Wondermind to proceed funding the corporate, in accordance to authorized paperwork obtained and considered by International Information.
Wondermind was co-founded by Gomez, Teefey and Daniella Pierson in November 2021 and claims to share “doable methods to place your psychological health first daily,” in accordance with the web site.
The lawsuit accuses Wondermind and the founders of falsely representing the corporate’s “infrastructure, management, and assets vital for the Firm to launch right into a worthwhile, one-of-its-kind psychological well being and wellness platform.”
The swimsuit additionally claims that the defendants informed the plaintiff’s three issues, together with that Gomez can be “actively constructing the Firm as its head of selling,” that Pierson was “a $200 million government whose prior companies generated $40 million a 12 months and who had already secured institutional employer partnerships with JPMorgan and Constancy” and {that a} “full slate of revenue-generating initiatives, together with promoting offers, superstar cowl tales, and a groundbreaking app, have been already underway.”
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“Gomez presupposed to signal a contract obligating her to carry out after which ignored it. The partnerships didn’t exist. The initiatives by no means materialized. The app was by no means constructed,” the authorized paperwork allege.
International Information has reached out to Gomez’s representatives, however has not acquired a response.
It additionally claims that whereas Wondermind “quietly collapsed,” the founders allegedly didn’t say “a phrase to the traders whose cash was funding the collapse.”
The traders allegedly discovered concerning the information from a web-based article revealed in September 2025 by The Lower, titled “What Occurred at Wondermind?”
“Intimately, that article outlined the state of utter disarray on the Firm, together with Teefey’s obvious substance abuse dysfunction and her gross mismanagement of the Firm; Gomez’s abject dereliction of her duties to the Firm and, certainly, her lively efforts to distance herself from it, given her long-running private struggles together with her mom, Teefey; an government energy wrestle at Wondermind, leading to Pierson’s outser from the Firm and a management void and the Firm’s failture to fulfill even its most elementary obligations, akin to well timed paying its staff and venders,” the lawsuit states.
The traders declare they put USD$1.2 million into Wondermind and at the moment are accusing the corporate of securities fraud, frequent regulation fraud and breach of contract.
The lawsuit additionally shares allegations of traders being given updates that they declare have been deceptive or false.
It says that from 2022 to 2025, the plaintiffs “proactively” contacted Teefey and Pierson for updates on the corporate.
“When the Defendants would supply updates — both by electronic mail or on a cellphone name — they hid the numerous operational and monetary points on the Firm. Certainly, the Defendants affirmatively misrepresented that the Firm was performing properly,” the lawsuit alleges.
The traders are looking for rescission of their investments in Wondermind, damages, prices and legal professionals’ charges.
—With information from Reuters
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