Selena Gomez and her mother have been accused of fraud in a lawsuit filed by investors of her mental health company Wondermind, alleging founders ‘falsely’ represented the crumbling organization as one poised for success. Wondermind, founded by Selena Gomez, her mom Mandy Teefey and Daniella Pierson in 2021, came into controversy last year following The Cut’s exposé revealing alleged disarray behind-the-scenes of the company.Now investors who poured in $1.2 million into the organization are seeking a jury trial in a new lawsuit filed against Gomez, her mother Teefey, Pierson, and Wondermind Global Inc. The plaintiffs allege they were made to believe the company had been equipped with resources necessary to make it a success – but unbeknownst to them, Wondermind ‘was in the midst of collapse.’ Investors claim they were left in the dark about the problems going on in the company for more than three years until a 2025 article by The Cut revealed the alleged troubles going on behind-the-scenes. The Daily Mail has contacted representatives for Gomez and Teefey for comment. Selena Gomez and her mother are now being sued after allegedly defrauding investors of their mental health company Wondermind with a ‘false’ representation of their businessIn court documents obtained by The Daily Mail, the plaintiffs allege: ‘The Defendants falsely represented that the Company had the infrastructure, leadership, and resources necessary for the Company to launch into a profitable, one-of-its-kind mental health and wellness platform.’Among other misrepresentations, the Company, including through the Individual Defendants, who directly solicited the Plaintiffs’ investments, told the Plaintiffs three things: that Selena Gomez, one of the most famous women on earth with a billion-dollar brand and a platform unmatched in social media, would be actively building the Company as its head of marketing; that co-CEO Daniella Pierson was a $200 million executive whose prior businesses generated $40 million a year and who had already secured institutional employer partnerships with JPMorgan and Fidelity; and that a full slate of revenue generating initiatives, including advertising deals, celebrity cover stories, and a groundbreaking app, were already underway. These representations were false.’The claim alleges that Gomez ‘purported to sign a contract obligating her to perform’ only to ignore it, partnerships didn’t exist, initiatives never came into fruition, and the app was never created. ‘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 claim alleges. Only ‘after years of concealment’ did investors learn about the inner workings of the company through a Cut expose. The company was inspired by the founders’ respective mental health struggles but was hit by controversy in May 2025 when it emerged the platform was in financial crisis and had laid off 60 per cent of its employees.In a The Cut expose, anonymous employees accused Wondermind CEO Teefey of erratic behavior, including ‘hallucinating’ a break-in at the business, sleeping over at the office for days and frequently getting injections of liquid Benadryl, which she allegedly claimed were vitamin IV drips.One anonymous staff member called Teefey’s office her ‘drug den’ – while another claimed they were in her office when she snorted ‘what they believe was a line of Ritalin’, an ADHD medication. Teefey told the publication she did ‘absolutely not’ snort Ritalin in her office, adding in a statement: ‘I started Wondermind because I wanted to help people with mental illness. It’s unfortunate that a few disgruntled employees with an ax to grind can spread lies about me and distort the truth.’According to the lawsuit, the article revealed to the plaintiffs that how the founders had been portraying the company to them was ‘fiction.’ ‘The information unearthed in this article proved not only that the Company was, and is, in a state of financial calamity; it proved that the Defendants’ representations about the Company’s operations, personnel, and financial prospects were a fiction. There was no legitimate enterprise in the works, much less a lucrative one,’ the lawsuit claims. Following the publication of The Cut exposé, the plaintiffs sought a rescission of their investments and a return of their investment funds, sending the notice a notice of recission.However, the defendants allegedly proceeded to ‘lull and mislead the Plaintiffs’ – with one alleged email from Teefey claiming Wondermind was ‘now on track to release products in the first quarter to straight profit.’ The suit claims Teefey ‘never substantively responded to the notice’ and continued to change her story of what became of the investment funds. ‘On April 8, 2026, when Resnick [Andrew Resnick of Bespoke Wondermind LLC, which invested in Wondermind] asked Teefey whether there were any updates on the Company, Teefey replied: “Hi Andrew – I guess I am confused. I thought we returned your investment along with the other investors you came in with. So, I am confused about owing you updates. Please advise.” Wondermind had returned nothing, to Resnick or to any of the Plaintiffs. ‘When Resnick responded that he had received no funds and asked which investors had been paid back, Teefey deflected: “That would be a question for Selena’s legal team. I am not sure I am at liberty to give that info out, but I will touch base with them so they can reach out to you. I’ll connect you once they respond.” No one from Gomez’s legal team has ever contacted the Plaintiffs.’The following day, Resnick received an email from Teefey which referred to an unidentified lawsuit and negotiations.’Although Resnick did not understand to what, exactly, Teefey was referring, Teefey wrote: “I just forwarded this to PJ Shapiro and Thomas Kingsley. Our lawyers were not handling but we did answer the lawsuit and I know negotiations have been happening. So, please do not need anymore threats on lawsuits that should be towards our co founder Daniella since all allegations were her actions. Thank you for your understanding and trust we have and will co to use [sic] take this seriously.’Now the investors are seeking a rescission of their Wondermind investments, damages, costs, attorney’s fees, and other possible relief. ‘The Plaintiffs accordingly bring this Complaint for securities fraud under Rule 10b-5 of the Securities Exchange Act of 1934, common law fraud, and breach of contract, among other claims. ‘The Plaintiffs seek rescission of their investments in Wondermind, damages, costs, attorney’s fees, and any other relief to which they are entitled under applicable law. ‘