Here’s why Selena Gomez and her mum are being sued over heir mental health business

Selena Gomez and her mum Mandy Teefey are facing a lawsuit from investors who claim they were misled into putting around $1.2 million into their mental health startup, Wondermind.

According to Reuters, the lawsuit also names Wondermind Global and former co-founder Daniella Pierson. The investors allege they were given an overly rosy picture of the company and its leadership, while serious problems were allegedly happening behind the scenes.

Via David Buchan/Shutterstock

According to the investors, they handed over the money because of promises about Selena’s involvement in the business and the potential for Wondermind to become a major success. They are now trying to get their investment back, as well as damages and legal costs.

So, what actually happened with Wondermind?

Wondermind was launched in 2021 by Selena, Mandy and Daniella as a mental health and wellness company. Selena’s huge celebrity following was a big part of the appeal, with the lawsuit claiming she was presented as someone who would actively help promote and grow the business.

The investors now claim that wasn’t what happened.

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A post shared by Mandy Teefey (@mandyteefey)

The suit says Selena made it seem as though she would be heavily involved, but allegedly did very little after they invested. The investors also accuse Daniella of making false claims about her previous business success and the returns they could expect.

The companies claim that “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.”

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According to the lawsuit, the investors didn’t realise how bad things had allegedly become until The Cut published an investigation into Wondermind in September 2025, describing the company as being in a “state of utter disarray.”

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A post shared by Mandy Teefey (@mandyteefey)

The article looked into the company’s financial and management problems, including difficulties paying employees and vendors on time.

The investors’ lawsuit also repeats allegations made in The Cut about Mandy’s alleged substance abuse and management of the company, as well as accusing Selena of “abject dereliction of her duties to the company.”

They claim Selena had also been distancing herself from the business because of difficulties in her relationship with her mum.

Mandy has previously denied the substance abuse allegations and rejected claims that she badly managed the company.

In a statement to TMZ, 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.”

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Featured image via David Buchan/Shutterstock