EXCLUSIVE: Selena Gomez and Mom Hit With $1Million Wondermind Fraud Suit
Selena Gomez and mom Mandy Teefey face a $1.2M fraud suit over their mental health startup Wondermind.
Sept. 1 2026, Published 6:15 a.m. ET
Selena Gomez is facing a monster of a migraine over her mental health startup, RadarOnline.com can reveal.
The actress and her mother, Mandy Teefey, have been slapped with a million-dollar lawsuit accusing them of fraud involving their multimedia platform, Wondermind.
Investors Allege Deception Behind Funding
Mandy Teefey is accused of misleading investors about Wondermind's operations.
Gomez, 34, and Teefey, 50, are accused of deceiving investors into continuing to fund the company, which offers mental health support, amid internal chaos.
The lawsuit claims the Only Murders in the Building star and her mom falsely represented Wondermind's infrastructure, leadership and the resources needed to kick off a profitable platform.
According to the legal papers, the investors – Wondermind SRS 44 LLC and Bespoke Wondermind LLC – poured more than $1million into the startup, which was founded in 2022. They allege they made the investments after Gomez publicly promoted Wondermind in interviews and TV appearances.
The investors claim they learned about the problems at Wondermind through a September 2025 exposé in The Cut. In that investigation, former and current employees painted a picture of chaos, including not getting paid on time and Teefey sleeping in her office.
Investors Accuse Founders of Fraud
Investors allege Daniella Pierson committed securities fraud involving the mental health startup.
"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," the lawsuit alleged.
The investors also claim Teefey mismanaged the firm, while Gomez had an "abject dereliction of her duties to the company," as she reportedly stepped back due to a complicated relationship with her mother.
The investors are suing Gomez, Teefey and their former business partner Daniella Pierson for securities fraud. They're seeking unspecified damages, including a return on their investments.
Gomez's Camp Denies Lawsuit Claims
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Gomez's attorney called the lawsuit's claims 'completely meritless.'
Teefey previously denied accusations in The Cut, insisting in a statement that the claims were "absolutely" not true. Gomez's attorney calls the claims "completely meritless," while Pierson "categorically denie[d] the allegations" against her in an earlier statement.
"I started Wondermind because I wanted to help people with mental illness," Teefey said in a statement. "It's unfortunate that a few disgruntled employees with an ax to grind can spread lies about me and distort the truth."
