A federal lawsuit filed in Delaware has accused psychological well being startup Wondermind, co-founded by Selena Gomez, her mom Mandy Teefey, and entrepreneur Daniella Pierson, of defrauding traders. The grievance alleged that the corporate misrepresented its enterprise prospects, management, superstar partnerships, and product growth.
Wondermind was launched in 2021 as a psychological health firm that aimed to cut back stigma surrounding psychological well being by digital content material and wellness assets.
The grievance was filed by Wondermind SRS 44 LLC and Bespoke Wondermind SPV I LLC, two funding entities that funded the startup.
The lawsuit seeks to rescind practically $1.2 million in investments and get better damages.
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What are the traders alleging?
The lawsuit alleged that Wondermind’s founders made a number of guarantees that by no means materialized. Traders stated that they had been advised the corporate would launch a devoted Wondermind app, safe main promoting partnerships, and have superstar cowl tales to drive progress.
In line with the grievance, none of these initiatives had been led to completion. The traders had been as a substitute repeatedly assured that the corporate was progressing as deliberate. Traders additional alleged that they acquired restricted updates and that many communications painted a very optimistic image of Wondermind’s monetary well being and operations.
Moreover, they believed that Gomez’s engagement as a star with a large and devoted fan base was what made the corporate helpful. In line with the lawsuit, Wondermind promised that Gomez could be “intimately concerned within the Firm” as head of selling and public relations.
The grievance particularly claimed that Gomez “presupposed to signal a contract obligating her to carry out after which ignored it.” It additional learn, “The initiatives by no means materialized. The app was by no means constructed.”
It added, “And for 3 years, whereas the Firm quietly collapsed round them, not one in every of its founders, officers, or administrators stated a phrase to the traders whose cash was funding the collapse.”
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The inner “turmoil”
The lawsuit pointed to 2 main stories printed final yr as proof that Wondermind was experiencing important inner issues.
A Forbes investigation titled “’Smoke And Mirrors’: How This Entrepreneur Exaggerated And Self-Promoted Her Means Into Turmoil,” revealed Daniella Pierson’s claims as CEO of the each day e-newsletter concerning reported viewers figures and firm valuations.
Moreover, traders had been knowledgeable that she had partnered with Constancy and JPMorgan.
Following the report, the lawsuit alleged Teefey advised traders that Pierson had “misappropriated investor funds, together with the Plaintiffs’ funds” to finance an costly life-style, which included her $60,000 month-to-month lease for her New York Metropolis residence. Nonetheless, traders declare they had been by no means knowledgeable of these allegations earlier than the Forbes article was printed.
The grievance additionally referenced The Minimize investigation, which was printed in September 2025, “What Occurred at Wondermind?” The article alleged Teefey struggled with substance abuse, Gomez had distanced herself from the corporate on account of household disagreements and Pierson had left following disputes with Teefey.
The swimsuit learn, “The accounts within the Minimize article collectively present that, from the outset, Wondermind had no plan for its future — a lot much less a plan for attaining a multi-billion greenback valuation.”