Five investors accuse Selena Gomez and her co-founders of misleading them over the financial health, operations and prospects of Wondermind.
LOS ANGELES, UNITED STATES — WEB DESK: American singer and actress Selena Gomez is facing a lawsuit from investors over her mental health startup Wondermind, with plaintiffs alleging that they were misled about the company’s prospects, operations and the role of its founders.
Five investors reportedly invested approximately $1.2 million in Wondermind Global in 2022, according to court allegations reported by Express Urdu and Reuters.
Investors allege misleading claims
Wondermind was launched in 2021 with the stated aim of helping people improve their mental fitness and wellbeing.
According to the lawsuit, Gomez was listed as a co-founder, chief impact officer and head of marketing. Investors allege that they were given expectations regarding the company’s valuation, potential partnerships, advertising arrangements and the development of a mobile application.
The plaintiffs claim that several of those initiatives did not materialize and that the company ultimately struggled to maintain its operations.
Reuters reported that the investors allege Gomez failed to fulfill certain contractual responsibilities, including commitments connected to marketing and developing the company’s business.
Gomez’s co-founders also named
The lawsuit also names Gomez’s mother, Mandy Teefey, and former business partner Daniella Pierson.
Wondermind was founded by Gomez, Teefey and Pierson in 2021. The company sought to build a platform focused on “mental fitness” and reportedly attracted significant investor interest during its fundraising efforts.
The plaintiffs allege that important financial and operational problems were not adequately disclosed to investors while the company was experiencing difficulties.
Startup’s financial problems
The lawsuit follows reports about growing problems inside Wondermind.
According to Reuters, investors said they only became aware of the extent of the company’s difficulties after a 2025 report highlighted internal problems and the startup’s deteriorating financial position.
The investors are seeking to recover their investments as well as damages and legal costs.
Allegations have not been proven in court
The claims against Gomez and the other defendants remain allegations and have not been established as fact by a court.
Express Urdu reported that Teefey has denied allegations that investor funds were used for personal expenses.
Gomez had not immediately responded to Reuters’ request for comment when the report was published.
The case is now expected to determine whether the investors’ allegations regarding Wondermind’s business representations and management can be substantiated.
Wondermind controversy adds to celebrity-business scrutiny
The lawsuit places renewed attention on the growing involvement of celebrities in startups and consumer businesses.
Gomez used her considerable public profile to promote Wondermind, while the company positioned itself around mental health and wellness.
The case could therefore draw wider attention to the responsibilities of celebrity founders and executives when raising money from private investors.
For now, the allegations remain subject to the legal process, and no finding of fraud has been made against Gomez.
