Selena Gomez has broken her silence two days after she and her mother were accused of fraud in a lawsuit filed by Wondermind investors.
Gomez's attorney, Mathew S. Rosengart, told The Daily Mail in a statement: "The allegations that Selena Gomez engaged in any way whatsoever in any purported "fraud" or other wrongdoing are completely meritless, both factually and legally." Rosengart added: "We will vigorously defend these false allegations and indeed are filing a motion to dismiss the baseless claims against her."
People was first to report the news of the lawsuit against the 34-year-old actress and her mother, Mandy Teefey, 50. Representatives for Gomez and Teefey were also contacted by The Daily Mail for comment.
Investor Allegations and Financial Claims
The lawsuit was filed by plaintiffs Wondermind SRS 44, LLC and Bespoke Wondermind SPV I, LLC, who are seeking a jury trial against Gomez, Teefey, co-founder Daniella Pierson, and Wondermind Global Inc. The investors poured $1.2 million into the organization and claim they were hoodwinked into believing the company had the resources necessary for success while it "was in the midst of collapse."
In 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." The suit claims the founders falsely represented the crumbling organization as poised for success while leaving investors in the dark for more than three years.
Promised Initiatives and Marketing Role
According to court filings, the defendants directly solicited the investments by making three specific representations. They told investors that Gomez, described as one of the most famous women on earth with a billion-dollar brand and a platform unmatched in social media, would actively build the company as its head of marketing. They also claimed 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.
Additionally, investors were told that a full slate of revenue-generating initiatives, including advertising deals, celebrity cover stories, and a groundbreaking app, were already underway. The lawsuit alleges Gomez purported to sign a contract obligating her to perform only to ignore it, adding: "The partnerships did not exist. The initiatives never materialized. The app was never built."
The claim alleges that 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. Investors only learned about the inner workings after years of concealment following an exposé published by The Cut.
The Cut Exposé and Workplace Misconduct Allegations
Wondermind was founded in 2021 by Gomez, Teefey, and Pierson, inspired by their respective mental health struggles. Controversy hit the platform in May 2025 when it emerged the company was in financial crisis and had laid off 60 per cent of its employees. An exposé by The Cut subsequently revealed alleged disarray behind the scenes.
In The Cut piece, anonymous employees accused 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 staff member called Teefey's office her "drug den," while another claimed they were present when she snorted what they believed was a line of Ritalin, an ADHD medication.
Teefey denied the allegation, telling the publication she did "absolutely not" snort Ritalin in her office. In a statement, Teefey said: "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."
Unanswered Notices and Email Exchanges
Following the publication of The Cut exposé, the plaintiffs sought a rescission of their investments and a return of their investment funds, sending a notice of rescission. The lawsuit claims the defendants proceeded to lull and mislead the plaintiffs, pointing to an alleged email from Teefey claiming Wondermind was "now on track to release products in the first quarter to straight profit." Teefey also downplayed accusations of her misconduct and financial disarray, promising to respond in 10 days.
The suit claims Teefey never substantively responded to the notice and continued to change her story regarding the investment funds. On April 8, 2026, when Andrew Resnick of Bespoke Wondermind LLC 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." Court documents state Wondermind had returned nothing to Resnick or any of the plaintiffs.
When Resnick responded that he 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." The suit notes no one from Gomez's legal team ever contacted the plaintiffs. The following day, Resnick received an email from Teefey referring to an unidentified lawsuit and negotiations, in which she 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."
Claims of Concealment and Misrepresentation
The lawsuit details additional specific misrepresentations made to investors. Plaintiffs allege defendants were aware that long-running, undisclosed personal disputes between Teefey and Gomez would make it impracticable for Gomez to be intimately involved in the company as Chief Impact Officer and head of marketing. They also claim defendants knew Teefey had substance abuse issues that diminished her capacity to administer the company and rendered her unfit to manage it.
Furthermore, the suit alleges Pierson's business background and accolades were misrepresented, including claims that her newsletter business The Newsette generated $40 million in yearly revenue and had a valuation of approximately $200 million, when Pierson knew those representations were false. Plaintiffs claim defendants acted to lull investors by affirmatively misrepresenting that the company was performing well, hiding operational, financial, and management issues that would not be uncovered by a reasonably diligent investor.
Legal Claims and Current Company Status
The plaintiffs are bringing their 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. They are seeking a rescission of their Wondermind investments, damages, costs, attorney's fees, and other relief.
The Wondermind website currently features articles offering advice on combatting loneliness, rumination, setting boundaries, and interviews with celebrities discussing mental health. Teefey is listed as co-founder and CEO, while Gomez is listed as co-founder following Pierson's departure in 2023. An advisory board featuring mental health professionals also exists. Earlier this year, Wondermind was sued over $813,027.18 in back-rent by its former landlord in New York City.
