Selena Gomez and Mandy Teefey Sued Over Wondermind’s Alleged Collapse

Selena Gomez, her mother Mandy Teefey, and The Newsette founder Daniella Pierson launched Wondermind in 2021 with a stated goal of making costly mental health tools more accessible. Five years later, the company and its founders face a lawsuit accusing them of defrauding investors who put nearly $1.2 million into the venture.

The complaint, filed on Wednesday, alleges investors were told a Wondermind app was coming, advertising deals were in motion, and celebrity cover stories were already underway. Instead, according to the filing, “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 suit includes claims for securities fraud, common law fraud, and breach of contract, and seeks rescission of the investments plus damages and costs.

The legal action also points to a prior Cut report that described tensions between Gomez and Teefey, a power struggle between Teefey and Pierson, and the startup’s failure to pay employees and vendors on time. Pierson, who was ousted from Wondermind in 2023, faces a separate securities fraud claim and accusations of misappropriating investment funds for personal purposes. Representatives for the parties did not immediately respond to requests for comment.