Selena Gomez Sued by Investors Over Wondermind Startup

Selena Gomez is facing a fraud lawsuit from investors in Wondermind, the mental health startup she co-founded in 2021, after the company reportedly ran into serious trouble last year, including layoffs and missed payroll. The suit, filed this week in Delaware District Court, also names Gomez’s mother, Mandy Teefey, and business partner Daniella Pierson as defendants.

Investors Cite Gomez’s Social Media Influence

The plaintiffs allege they invested largely because they expected Gomez, who commands roughly 404 million Instagram followers and 58.7 million on TikTok, to actively promote the company to her massive audience. They claim her involvement was central to the startup’s perceived value, but that this promised marketing power never materialized as expected.

Pierson has pushed back publicly, telling NBC News she denies the allegations and plans to share financial records supporting her position. She also stated she never used investor money for personal spending and had instead put her own funds into the company without taking a salary.

Broader Claims of Overstated Progress

Beyond the marketing issue, the lawsuit accuses Wondermind of exaggerating its business standing, including claims about partnerships with major employers and other revenue sources that reportedly never fully came together. Investors say they only became aware of how serious the company’s problems were after a 2025 magazine investigation into Wondermind’s internal struggles.

Gomez launched Wondermind to promote everyday practices supporting mental wellness, drawing comparisons to physical fitness routines. The startup had reportedly reached a $95 million valuation in 2022. Investors are now seeking to recover close to $1.2 million in losses, plus damages and legal fees, as the case moves forward.