Selena Gomez and her mom sued over alleged fraud in connection with mental-health startup Wondermind: Details

Singer, actor and beauty mogul Selena Gomez is in legal trouble! According to a report by Reuters, Gomez is facing a lawsuit filed by investors alleging fraud and neglect over her duties to build and promote a mental health start-up. The lawsuit was filed in federal court in Delaware on Thursday.

Selena Gomez sued- here's why

According to the claims, the plaintiff invested nearly $1.2 million in Wondermind Global, the mental health company which was launched in 2021. It was aimed to help users with their “mental health”, added the lawsuit

In the complaint, investors claimed that Selena Gomez, one of the biggest celebrities and mental health advocates with 500 million+ followers, was brought on board. Her role reportedly involved building the company as the head of marketing. The plaintiff argued that the Only Murders in the Building actor and others in the leadership roles of the company did not deliver on the expectations, including creating a mobile application.

"Gomez purported to sign a contract obligating her to perform and then ignored it," the lawsuit read.

"There was no legitimate enterprise in the works, much less a lucrative one," the plaintiffs added, saying that the company failed to meet “even its most basic obligations, such as timely paying its employees and vendors.”

The lawsuit also claimed the plaintiffs were unaware of the company's financial troubles until they noticed a news report about the same in September 2025. Reportedly, the article described the start up in a “state of utter disarray.”

Currently, they are seeking to recover their investments, along with legal fees.

Selena Gomez has not yet responded to the allegations.

Allegations against Selena Gomez's mother

According to a TMZ report, not only Selena Gomez but also her mother Mandy Teefey has been sued in the matter.

Two companies, Wondermind SRS 44 LLC and Bespoke Wondermind LLC, claim, as quoted by the entertainment portal, "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.”

The investors reportedly claim the article also detailed Mandy’s alleged substance abuse disorder and alleged gross mismanagement of the company. It further accuses Selena of an “abject dereliction of her duties” and of actively distancing herself from the company amid personal struggles with her mother.

Going by the same report, Mandy dismissed claims of substance abuse and the poor state of the mental health company. She reportedly 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."

In the lawsuit, the investors claimed that they confronted Mandy about the claims in the article in question. However, they said that Gomez's mother tried blaming Daniella Pierson, who was their former business partner in the company.

Talking about Wondermind, Mandy had told Harpers Bazaar in 2022, “We want to keep the conversation just like real talk and relatable to everyone.”

"We are three founders living with mental illness, we don't have the answers. So I feel like we're going to be together in the process, not talking down, we will be talking together."

"Our goal is to create an honest, safe, comfortable place that everyone can turn to," Gomez had added.