American singer and actress Selena Gomez, her mother, Mandy Teefey, and former business partner Daniella Pierson have been sued by investors who accused them of fraud over mental-health startup Wondermind Global.

Wondermind SRS 44 LLC and Bespoke Wondermind SPV I LLC filed the lawsuit in the United States District Court for the District of Delaware.

The investors said they put nearly $1.2 million into Wondermind in 2022 after receiving allegedly false information about the company’s leadership, resources, partnerships and capacity to become profitable.

Wondermind Global was also named as a defendant in the court complaint, which includes claims of securities fraud, common-law fraud and breach of contract.

The plaintiffs alleged that they were told Gomez would be “intimately involved” in building and promoting the company as its head of marketing.

They also claimed Pierson was presented as a “$200 million executive” whose previous businesses generated $40 million annually and who had secured institutional partnerships with JPMorgan and Fidelity.

According to the complaint, investors were further informed that several money-making projects—including advertising agreements, celebrity cover stories and a mental-health application—were already being developed.

“The partnerships did not exist. The initiatives never materialised. The app was never built,” the investors alleged.

They also accused Gomez of failing to perform the marketing role on which the investment pitch had relied.

The plaintiffs claimed Wondermind’s founders and directors remained silent for three years while the business deteriorated, leaving investors unaware of its alleged financial and operational problems.

They said they first discovered the extent of the company’s difficulties through a September 2025 report by The Cut.

The report contained allegations of financial mismanagement, unpaid employees and vendors, leadership disputes and Gomez’s alleged attempt to distance herself from Wondermind.

It also alleged that Teefey had substance-abuse problems that affected her ability to manage the company. She denied the claims, describing them as lies spread by disgruntled former employees.

The lawsuit also cited an August 2025 Forbes investigation that questioned Pierson’s representations about the success of her previous ventures.

When investors contacted Teefey about the report, she allegedly accused Pierson of diverting company funds to finance personal expenses.

Pierson, who left Wondermind in 2023, has “categorically” rejected the accusations.

Her representative said she would produce documents and financial records to establish the facts, adding that Pierson invested her own money in Wondermind and did not receive a salary from the company. Inc.

The investors also alleged that Teefey told them in April 2026 that their money had been returned and later referred them to Gomez’s legal team when they disputed her account.

Teefey subsequently mentioned an escrow account purportedly created to repay the investors, but the plaintiffs claimed no such account existed.

Gomez had not publicly responded to the allegations at the time of reporting. Reuters

The investors have demanded a jury trial and are seeking the cancellation of their investments, repayment of their money, damages, legal costs, attorneys’ fees and other relief.