August 13, 2026 at 3:15pm EDT

Investors in Selena Gomez‘s mental health company, Wondermind, are suing the singer and her mother, Mandy Teefey, for allegedly defrauding them amid the “quiet collapse” of the company.

According to Forbes, Wondermind SRS 44 LLC and Bespoke Wondermind LLC filed the lawsuit in Delaware federal court on Aug. 13. The two companies claim they invested nearly $1.2 million in Gomez’s startup, Wondermind Global, which was supposed to be an “inclusive space where people could come together to explore, discuss, and navigate their feelings,” per the company’s website.

However, in court documents obtained by Page Six, the companies say that Gomez, Teefy, and Daniella Pierson — a Wondermind co-founder, who is also included in the lawsuit — “falsely represented” that the startup “had the infrastructure, leadership, and resources necessary for the company to launch into a profitable, one-of-its-kind mental health and wellness platform.”

The investors are also accusing Gomez of “ignoring” her duties to the company as “its head of marketing.” They claim she never fulfilled her contractual duties by promoting Wondermind on her social media accounts.

“The partnerships did not exist. The initiatives never materialized. The app was never built,” the lawsuit says, per Forbes. “And for three years, while the Company quietly collapsed around them, not one of its founders, officers, or directors said a word to the investors whose money was funding the collapse.” 

These allegations were detailed in a September 2025 article by The Cut, which also talked about Teefy’s alleged drug use.

Forbes notes that the lawsuit also cites an August 2025 story they published about Pierson’s sketchy past. The outlet claims that Pierson has a tendency of using “large exaggerations and extreme self-promotion” to build her business.

In the lawsuit, the companies allege that Teefey told them that Pierson had “misappropriated investor funds” after the 2025 Forbes article was published.

Wondermind has been in the news for quite some time. In 2025, they allegedly laid off 60% of its 15-person staff after employees claimed they hadn’t been paid for weeks.