Selena Gomez and her mother, Mandy Teefey, have reportedly been accused of fraud in a new lawsuit.
Gomez, 34, and Teefey, 50, are accused of allegedly deceiving investors of mental health startup Wondermind to continue funding the company amid internal struggles in a court filing obtained by TMZ.
The lawsuit was filed by Wondermind SRS 44 LLC and Bespoke Wondermind LCC over Gomez’s parent company, in which plaintiffs claimed that Gomez and Teefey falsely represented Wondermind’s infrastructure, leadership and the resources needed to launch a profitable platform. The investors alleged that they invested more than $1 million into Wondermind.
“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,” court documents read.
The investors further claimed that they learned that Wondermind is apparently struggling through a 2025 exposé in The Cut. At the time, the magazine reported that Wondermind was in a “state of utter disarray” and that Teefey struggled with substance abuse issues. (Teefey vehemently denied the accusations at the time.)
Per the investors’ lawsuit, they claimed that Teefey had mismanaged the firm while Gomez had an “abject dereliction of her duties to the company.” Gomez and her mom are sued for securities fraud with the investors seeking unspecified damages, including a return on their investments.
Selena and Teefey cofounded Wondermind, a multimedia platform designed to offer mental health support, in 2022 alongside Daniella Pierson.
“We hope to be the one-stop shop for all aspects of mental fitness. We have taken an unexpected and innovative chance on the way people can understand and participate in a creative foundation to show anyone that a shift is possible,” Teefey said in a statement at the time. “Far from medical or preachy, we’ve struck a balance between education, media and self-reflection that truly inspires growth.”
News broke in May 2025 that Wondermind reportedly laid off 60 percent of its staff amid financial issues.
“In the coming days, we will be transitioning into a new chapter for Wondermind,” a spokesperson for Wondermind told Forbes in a statement at the time, claiming that the firm had “rectified” any outstanding debts.
Neither Gomez nor her mom have addressed the investors’ lawsuit. Us has reached out for comment.
Teefey previously denied The Cut accusations, telling Us in a statement that the claims were “absolutely” not true.
“I started Wondermind because I wanted to help people with mental illness,” Teefey told Us in a statement last year. “It’s unfortunate that a few disgruntled employees with an ax to grind can spread lies about me and distort the truth. Even more disappointing that the media is willing to amplify their lies.”
If you or someone you know is struggling with substance abuse, contact the Substance Abuse and Mental Health Services Administration (SAMHSA) National Helpline at 1-800-662-HELP (4357).
