Selena Gomez and Mother, Mandy Teefey, Accused of Fraud in Lawsuit Against Mental Health Startup Wondermind

In a shocking turn of events, pop sensation Selena Gomez and her mother, Mandy Teefey, are embroiled in a lawsuit alleging securities fraud. The lawsuit, filed by Wondermind SRS 44 LLC and Bespoke Wondermind LCC against Gomez's parent company, claims that the duo deceived investors about the mental health startup's infrastructure, leadership, and financial resources.

The plaintiffs, who invested over $1 million into Wondermind, allege that Gomez and Teefey knowingly misrepresented the company's status to continue receiving funding amid internal struggles. Court documents state that while the company was reportedly collapsing, neither founder nor director communicated this to investors. The investors' grievances intensified when a 2025 exposé in The Cut revealed that Wondermind was in disarray and that Teefey had substance abuse issues (which she vehemently denied at the time).

According to the lawsuit, Teefey allegedly mismanaged the firm, while Gomez is accused of dereliction of duty. The lawsuit seeks unspecified damages, including a return on investments, and both women are named as defendants. Selena and Teefey co-founded Wondermind in 2022 with Daniella Pierson, aiming to provide mental health support through a multimedia platform.

However, financial troubles came to light in May 2025 when Wondermind reportedly laid off 60 percent of its staff. The company claimed to be transitioning into a new chapter, asserting that they had rectified any outstanding debts. Neither Gomez nor Teefey have publicly addressed the lawsuit. This isn't the first time Teefey has faced accusations; she vehemently denied The Cut's substance abuse claims last year, stating that the allegations were false and that she started Wondermind to help people with mental illness.

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).