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Fraud Suit in Delaware
Selena Gomez and her mother, Mandy Teefey, were named as defendants in a federal lawsuit filed in Delaware by investors who say they were misled about Wondermind’s leadership, infrastructure, and resources to launch a profitable mental health and wellness platform.
“LOS ANGELES, Aug 13 (Reuters) - Singer and actor Selena Gomez was sued on Thursday by investors”
The complaint says the investors put in nearly $1.2 million in 2022 and alleges that Gomez “purported to sign a contract obligating her to perform and then ignored it,” while also claiming that “the partnerships did not exist. The initiatives never materialized. The app was never built.”
Reuters reported the suit was filed Thursday in federal court in Delaware, accusing Gomez and other company leaders of fraud by failing to build and promote the start-up, which was launched in 2021 to help users strengthen their “mental fitness.”
CNN said the investors claimed they were told Gomez would be actively involved as head of marketing, but that the company failed to meet “even its most basic obligations, such as timely paying its employees and vendors,” according to the lawsuit.
The lawsuit seeks to recoup the investors’ nearly $1.2 million and legal fees, while a representative for Gomez did not immediately respond to a request for comment, according to Reuters.
Claims, Denials, and Timing
Entertainment Weekly reported that the plaintiffs allege Gomez “would be actively building the Company as its head of marketing,” while also alleging that Daniella Pierson had “already secured institutional employer partnerships with JPMorgan and Fidelity” and that “a full slate of revenue-generating initiatives” was “already underway.”
The same report said the plaintiffs claim they did not learn of the alleged turmoil at Wondermind until The Cut published an article outlining “the state of utter disarray at the Company” in September 2025.
USA Today reported that Pierson’s representative said, “Daniella categorically denies the allegations against her and welcomes the opportunity to present concrete documentation and financial records that establish the facts,” adding that “she has never used investor funds for personal expenses.”
USA Today also said the suit alleges Teefey told investors that Pierson allegedly “misappropriated investor funds... to fund her lavish lifestyle,” and that the investors say it was the first time they learned of problems despite Pierson having left the company in 2023.
Reuters said the lawsuit argues the plaintiffs were unaware of the company’s troubles until an online news story detailed them in September 2025, and that plaintiffs are seeking to recoup their investments and legal fees.
What’s at Stake Next
The lawsuit described by Reuters says investors are seeking to recoup their investments and legal fees, while also alleging that Gomez and other leaders failed to deliver on promises including creating a mobile app.
““For three years, while the Company quietly collapsed around them, not one of its founders, officers or directors said a word to the investors””
Entertainment Weekly reported that the suit accused Gomez, Teefey, Pierson, and Wondermind of one count of securities fraud each, two counts of common law fraud, and one count of equitable fraud, while also accusing Pierson of additional counts including securities fraud, conversion, and unjust enrichment in the alternative to conversion.
CNN said the investors are suing for securities fraud, common law fraud, breach of contract and other claims, and that the plaintiffs are seeking to recoup their investments as well as damages and attorney’s fees.
Forbes said the investors’ securities fraud claim alleges multiple misrepresentations, including that Gomez would be “intimately involved” in the company, and that Teefey told the plaintiffs that Pierson had “misappropriated investor funds” after a Forbes article was published.
The suit also points to the investors’ allegation that Wondermind “quietly collapsed around them” for three years, while the complaint says “not one of its founders, officers or directors said a word to the investors whose money was funding the collapse,” and it demands a jury trial, according to Entertainment Weekly.
