Fraud allegations have been leveled against pop star Selena Gomez’s mental health startup, Wondermind. Several investors filed a lawsuit against Gomez on Thursday, alleging they were misled regarding the startup’s success and the extent of Gomez’s involvement.
Wondermind launched in 2021. According to court documents, Gomez was presented as a co-founder, “Chief Impact Officer,” and head of marketing. The platform aimed to provide users with simple, practical ways to prioritize mental well-being daily, while also inviting visitors to its website to sign up for a newsletter.
Five investors claim in the lawsuit that they invested a total of $1.2 million in the company in 2022. They had expected Gomez to leverage her celebrity status and massive social media following to rapidly scale the business.
However, the investors allege that while the company quietly collapsed before their eyes over the course of three years, none of the founders, executives, or directors informed the very investors whose capital was sustaining the business.
Gomez’s Mother and Former Business Partner Also Named in Lawsuit
The lawsuit also names Selena Gomez’s mother—and the company’s co-CEO—Mandy Teefey, as well as former business partner Daniella Pierson, as defendants.
Multiple charges have been brought against the defendants, including securities fraud, common-law fraud, and breach of contract. The investors are seeking the return of their investment funds, along with compensation for damages and legal fees.
Court documents state that Wondermind was valued at $95 million in 2022. Investors were led to believe that corporate partnerships with institutions like JPMorgan, advertising deals, celebrity cover stories, and a groundbreaking app were in the pipeline.
However, the investors allege that none of these materialized; in their words, the partnerships did not exist, and the initiatives were never implemented. The app itself was never built.
Details of the crisis from ‘The Cut’ report
The lawsuit notes that investors learned about the company’s issues through an investigative report published by The Cut last year. That report revealed that Wondermind was facing difficulties due to internal power struggles and tensions arising from personal relationships.
The lawsuit relies heavily on that report, alleging that Gomez failed to properly fulfill her contractual obligations due to long-standing personal issues with her mother.
The suit further claims that Gomez, Teefey, and Pearson collectively owned approximately 90 percent of the company’s shares.
According to court documents, Teefey informed investors of allegations that Pearson had used a portion of investor funds to pay the rent for her New York apartment—a property with a monthly rent of around $60,000.
Pearson stepped down from Wondermind in 2023.
However, in a statement issued on Thursday, Pearson denied the allegations brought against her. She stated that she welcomes the opportunity to respond to the claims and to present the actual facts through documentation and financial records.
She also denied the allegation that she used investor funds for personal expenses.
No immediate comment regarding the lawsuit was available from Selena Gomez, Mandy Teefey, or Wondermind.
