Selena Gomez, mom Mandy Teefey sued over alleged business fraud

WASHINGTON: Selena Gomez and her mother Mandy Teefey are facing a lawsuit from two companies that allege they were misled into investing more than $1 million in Wondermind Global, a mental health company that the investors claim was already struggling behind the scenes.

According to the lawsuit obtained by TMZ, Wondermind SRS 44 LLC and Bespoke Wondermind LLC are suing Wondermind Global, Gomez, Teefey and former business partner Daniella Pierson. The companies allege that Gomez and Teefey made false representations about the company’s infrastructure, leadership and resources needed to launch a profitable platform.

The investors claim they committed more than $1 million after Gomez promoted the business through television appearances and interviews. They allege that Gomez presented herself as heavily involved in the company but did little after their investment was made.

Selena Gomez and her mom Mandy Teefey are being sued for allegedly defrauding investors of nearly $1.2 million with their mental health startup Wondermind. https://t.co/vy3juLmFvj pic.twitter.com/fOxaZ9CaRw

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As per TMZ, the lawsuit also accuses Pierson of making false representations about her previous business successes and the returns investors could expect. The companies allege that they received no warning about the company’s deteriorating condition.

The lawsuit states, “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,” as quoted by TMZ.

The investors say they became aware of Wondermind’s problems only after The Cut published an expose in September 2025 that described the company as being in a “state of utter disarray”, as per TMZ.

According to the lawsuit obtained by TMZ, the article detailed allegations involving Teefey’s alleged substance abuse disorder and management of the company, as well as Gomez’s alleged “abject dereliction of her duties to the company” and efforts to distance herself from Wondermind amid personal difficulties involving her mother.

The Cut report also described alleged difficulties with basic company obligations, including paying vendors and employees on time.

Teefey denied the substance abuse allegations and claims that the company was in disarray. She said, “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,” as quoted by TMZ.

The lawsuit alleges that when investors confronted Teefey about the claims in the article, she blamed Pierson, who had already left the company. The companies are suing for securities fraud and seeking unspecified damages, including the return of their investments and additional damages. (ANI)