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Selena Gomez faces allegations of fraud from investors in Wondermind, the mental health startup she co-founded, after the company reportedly faced setbacks last year, including layoffs<\/a> and missed payrolls<\/a>. <\/p>\n A group of investors in Wondermind filed a lawsuit<\/a> this week accusing Gomez of failing to follow through on commitments that persuaded them to back the business. They also name Gomez\u2019s mother, Mandy Teefey, and business partner Daniella Pierson, founder of pop culture newsletter Newsette, as defendants in the case. <\/p>\n According to the complaint, which the investors filed on Thursday in Delaware District Court, the plaintiffs expected that Gomez would use her enormous public profile and social media reach to help market Wondermind. Gomez is the most-followed woman<\/a> on Instagram, with about 404 million followers. She has an audience of 58.7 million<\/a> followers on TikTok.\u00a0<\/p>\n The investors believed that Gomez\u2019s social media platforms would give the young company an immediate marketing advantage and a direct line to a highly engaged audience.\u00a0<\/p>\n They argue that Gomez\u2019s role was central to Wondermind\u2019s appeal. Investors said they understood that much of the startup\u2019s early value rested on her involvement, particularly her ability to promote its mental-health content and future products to followers who already trusted and paid attention to her.<\/p>\n They also allege that Wondermind positioned itself as a mental wellness platform that was exploring products like a \u201cgroundbreaking\u201d mobile app. They allege that the company ultimately failed to deliver the products and revenue it had projected.\u00a0<\/p>\n \u201cThe initiatives never materialized,\u201d the investors allege in the complaint. \u201cThe app was never built. And for three years, while the company quietly collapsed around them, not one of its founders, officers, or directors said a word to the investors.\u201d<\/p>\n Pierson said in a statement to NBC News<\/a> that she denies the allegations against her and \u201cwelcomes the opportunity to present concrete documentation and financial records that establish the facts.\u201d<\/p>\n \u201cTo be clear, she has never used investor funds for personal expenses,\u201d the statement read. \u201cQuite the opposite: Daniella invested her own money into the business and did not draw a salary from the company.\u201d <\/p>\n Gomez started Wondermind in 2021 with the intention of focusing on mindfulness and \u201cmental fitness.\u201d The company sought to promote routines to maintain mental health, just like people use gyms to stay physically fit.\u00a0<\/p>\n The startup sought outside funding in 2022 at a reported valuation<\/a> of $95 million. The suit describes Gomez as the company\u2019s chief impact officer and head of marketing. The investors contend that the venture overstated its prospects, leadership and readiness to build a viable, differentiated mental-health business.<\/p>\n The suit also alleges that Wondermind overstated how far along its business was. Investors claim the company said it had lined up employer partnerships with JPMorgan Chase and Fidelity, while also building revenue through advertising agreements and celebrity-driven cover stories.<\/p>\n According to the investors, they did not learn the extent of Wondermind\u2019s financial and operational problems until a September 2025 investigation<\/a> by New York <\/em>magazine\u2019s The Cut. The complaint says the article portrayed Gomez as disengaged from her responsibilities and attempting to distance herself from the company as its condition worsened.<\/p>\n The investors are seeking to recover their investments, which reports put at nearly $1.2 million<\/a>, along with damages and legal costs.\u00a0<\/p>\n<\/p><\/div>\n Selena Gomez faces allegations of fraud from investors in Wondermind, the mental health startup she co-founded, after the company reportedly faced setbacks last year, including layoffs<\/a> and missed payrolls<\/a>. <\/p>\n A group of investors in Wondermind filed a lawsuit<\/a> this week accusing Gomez of failing to follow through on commitments that persuaded them to back the business. They also name Gomez\u2019s mother, Mandy Teefey, and business partner Daniella Pierson, founder of pop culture newsletter Newsette, as defendants in the case. <\/p>\n According to the complaint, which the investors filed on Thursday in Delaware District Court, the plaintiffs expected that Gomez would use her enormous public profile and social media reach to help market Wondermind. Gomez is the most-followed woman<\/a> on Instagram, with about 404 million followers. She has an audience of 58.7 million<\/a> followers on TikTok.\u00a0<\/p>\n<\/p><\/div>\nOther allegations<\/h2>\n
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