A mental health media platform co-founded by Selena Gomez and her mother Mandy Teefey is facing legal action from investors who claim they lost substantial sums through fraudulent business practices. According to a lawsuit filed this week, backers invested approximately $1.2 million in Wondermind Global Inc., which launched in 2021 with the stated mission of democratizing access to mental health resources.
The plaintiffs allege they were provided misleading information regarding company leadership, resources, and planned initiatives, including a promised mobile application and advertising partnerships. The suit claims that over a three-year period, company leadership remained silent as the startup experienced significant operational decline while continuing to accept investor funds. Gomez, Teefey, and co-founder Daniella Pierson face accusations of securities fraud, common law fraud, and breach of contract.
Details about the company’s troubled operations surfaced following a 2024 investigative report that documented internal conflicts and management issues. These revelations allegedly exposed problems including failure to compensate employees and vendors promptly, along with accusations of substance abuse and mismanagement. Pierson, who departed the company in 2023, faces separate fraud claims involving inflated metrics presented to investors.
The investors are seeking restitution of their initial investments along with additional damages and legal costs. Representatives for all parties have not yet issued public statements regarding the allegations.
Originally reported by Rollingstone →
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