Billionaire singer and businesswoman Selena Gomez is facing a lawsuit from investors who accuse the singer and actress of misleading them about the success of her mental health startup, Wondermind.
Inside the Lawsuit
The lawsuit was filed just after Gomez, who has a net worth of $1.3 billion and her husband, Benny Blanco, wrapped up her 34th birthday trip to Italy.
Five investors filed suit on Aug. 13 in federal court, alleging they invested nearly $1.2 million in Wondermind in 2022 after being given an overly optimistic picture of the company’s finances, partnerships, and Gomez’s involvement. The investors are seeking to recover their money, along with damages and attorney’s fees.
Wondermind launched in 2021 with Gomez, her mother, Mandy Teefey, and entrepreneur Daniella Pierson as co-founders. Gomez was listed as the company’s “chief impact officer” and head of marketing, with investors allegedly expecting her celebrity profile and massive social media following to help build the business.
Wondermind was billed as a platform designed to make mental health and “mental fitness” resources more accessible.
According to the lawsuit, Wondermind was valued at $95 million in 2022, and investors were allegedly led to believe the company was developing major corporate partnerships, advertising deals, celebrity magazine covers, and a mobile app.
“The partnerships did not exist. The initiatives never materialized. The app was never built,” the lawsuit alleges.
The complaint further claims that Gomez failed to fulfill contractual obligations requiring her to take an active role in building and marketing the company. The investors allege that Wondermind’s founders and executives failed to disclose the company’s worsening financial condition for years while their money continued funding the business.
The investors say they only learned about the extent of Wondermind’s problems after a September 2025 investigation by The Cut detailed internal disputes and financial difficulties at the company.
The lawsuit also names Teefey and Pierson as defendants. Investors allege that Teefey told them Pierson had used investor funds to help pay personal expenses, including rent that allegedly cost about $60,000 a month. Pierson departed Wondermind in 2023.
Pierson has denied the allegations, saying she never used investor money for personal expenses.
Gomez, Teefey, and Wondermind had not immediately responded to media requests for comment.
Gomez, who has has had nine Top 10 hit songs, such as “Lose You to Love Me” and “Calm Down,” also owns the highly successful beauty brand Rare Beauty, which she launched in 2020 and is valued over $1 billion.
She has also starred in the hit Hulu series “Only Murders in the Building” with Steve Martin and Martin Short for five seasons.
