{"id":43696,"date":"2026-08-14T06:00:47","date_gmt":"2026-08-14T01:00:47","guid":{"rendered":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=43696"},"modified":"2026-08-14T06:00:47","modified_gmt":"2026-08-14T01:00:47","slug":"selena-gomez-and-her-mom-accused-of-fraud-over-their-mental-health-startup","status":"publish","type":"post","link":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=43696","title":{"rendered":"Selena Gomez and her mom accused of fraud over their mental health startup"},"content":{"rendered":"<p><script>\r\n  atOptions = {\r\n    'key' : '644b717812d811d6a1c1fc5b6ccd6fa6',\r\n    'format' : 'iframe',\r\n    'height' : 90,\r\n    'width' : 728,\r\n    'params' : {}\r\n  };\r\n<\/script>\r\n<script src=\"https:\/\/www.highperformanceformat.com\/644b717812d811d6a1c1fc5b6ccd6fa6\/invoke.js\"><\/script>\r\n<br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/media-cldnry.s-nbcnews.com\/image\/upload\/t_fit_1500w\/rockcms\/2026-08\/260813-selena-gomez-mandy-teefey-ch-1625-4967d8.jpg\" \/><\/p>\n<div>\n<p id=\"anchor-e5219b\" class=\"body-graf\">Superstar Selena Gomez and her mother are accused of defrauding investors of their mental health startup, Wondermind, in a federal lawsuit filed Thursday.<\/p>\n<p id=\"anchor-c542e8\" class=\"body-graf\">Wondermind was co-founded by Gomez, her mother, Mandy Teefey, and Daniella Pierson in November 2021 and touts mental fitness practices and tools.<\/p>\n<p id=\"anchor-6308d2\" class=\"body-graf\">The suit accuses Wondermind and its founders of falsely representing to investors the company\u2019s infrastructure, leadership and partnerships and concealing the alleged fraud for more than three years. <\/p>\n<p id=\"anchor-f2ac90\" class=\"body-graf\">The founders told investors they would build a Wondermind app, boasted advertising deals and secured celebrity cover stories, none of which came to fruition, the complaint said. <\/p>\n<p id=\"anchor-2d2687\" class=\"body-graf\">Investors poured nearly $1.2 million into Wondermind, but the trio falsely represented the company\u2019s plans to make it profitable, the suit said.<\/p>\n<p id=\"anchor-3a78f7\" class=\"body-graf\">It alleges that investors were kept in the dark until two bombshell media reports portrayed that Wondermind was a company in utter disarray. <\/p>\n<p id=\"anchor-f28c82\" class=\"body-graf\">The suit was filed in a Delaware federal court by Wondermind SRS 44 LLC and Bespoke Wondermind SPV I LLC, limited liability companies that invested in the startup. <\/p>\n<p id=\"anchor-1cbee8\" class=\"body-graf\">They accuse the company and the founding trio of securities fraud, common law fraud and breach of contract and are seeking rescission \u2014 meaning a legal cancellation of a contract \u2014 of their investment, as well as damages.<\/p>\n<p id=\"anchor-de4caa\" class=\"body-graf\">Reps for Wondermind, Gomez, Teefey and Pierson did not immediately respond to requests for comment Thursday. <\/p>\n<h2 id=\"anchor-675deb\" class=\"body-heading\">No products, no updates \u2014 and no Selena<\/h2>\n<p id=\"anchor-6fce7b\" class=\"body-graf\">Investors, in the suit, said that they believed the money they gave  Wondermind would rapidly scale and build a full suite of company products, including an app, podcast, an editorial publication and other wellness products.<\/p>\n<p id=\"anchor-08c718\" class=\"body-graf\">They also believed that the company\u2019s value lay in Gomez\u2019s involvement as a celebrity with a massive, loyal fan base. The suit alleges that Wondermind had indicated that Gomez would be \u201cintimately involved in the Company\u201d as head of marketing and involved in publicity.<\/p>\n<p id=\"anchor-fa70cb\" class=\"body-graf\">But none of those things happened, the suit said. <\/p>\n<p id=\"anchor-3b69f9\" class=\"body-graf\">\u201cGomez purported to sign a contract obligating her to perform and then ignored it. The partnerships did not exist. The initiatives never materialized. The app was never built,\u201d the suit said. \u201cAnd 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.\u201d<\/p>\n<p id=\"anchor-1c6a4b\" class=\"body-graf\">The investors also allege in the suit that the defendants did not provide timely updates about the status of their investments and the company\u2019s operations unless pressed.<\/p>\n<p id=\"anchor-981d68\" class=\"body-graf\">In the limited updates that they did provide, \u201cthey both affirmatively misrepresented the status of the Company\u2019s operations and concealed material information about ongoing issues at the Company,\u201d the complaint said. <\/p>\n<h2 id=\"anchor-77c407\" class=\"body-heading\">Media articles allege a company in disarray<\/h2>\n<p id=\"anchor-927f2e\" class=\"body-graf\">Investors were kept in the dark, the suit alleges, for more than three years. <\/p>\n<p id=\"anchor-b27628\" class=\"body-graf\">Then came an August 2025 Forbes article focused on Pierson with the headline \u2018<a href=\"https:\/\/www.forbes.com\/sites\/monicahunter-hart\/2025\/08\/07\/smoke-and-mirrors-how-this-entrepreneur-exaggerated-and-self-promoted-her-way-into-turmoil\/\" target=\"_blank\">Smoke And Mirrors\u2019: How This Entrepreneur Exaggerated And Self-Promoted Her Way Into Turmoil<\/a>. <\/p>\n<p id=\"anchor-8e98fd\" class=\"body-graf\">Pierson was described to investors as a millionaire executive whose past business, as CEO of the daily newsletter The Newsette, generated $40 million a year, the suit states. Investors were also told she had secured partnerships with JPMorgran and Fidelity.<\/p>\n<p id=\"anchor-7256fc\" class=\"body-graf\">But the Forbes report cast scrutiny and stated that Pierson exaggerated her readership and the valuation of her newsletter. <\/p>\n<p id=\"anchor-0c74fd\" class=\"body-graf\">Investors contacted Teefey for an explanation after the article published, and she responded, saying Pierson had allegedly \u201cmisappropriated investor funds \u2014 including the Platintiffs\u2019 funds \u2014 to fund her lavish lifestyle\u201d including her $60,000 monthly rent for her New York City apartment and monthly expenses before she was ousted from the company in January 2023, the suit said. <\/p>\n<p id=\"anchor-265a3c\" class=\"body-graf\">Yet Teefey had never informed investors about the alleged misappropriated funds before the article was published, the suit states.<\/p>\n<p id=\"anchor-dc98b2\" class=\"body-graf\">An article in The Cut published Sept. 3, 2025 entitled <a href=\"https:\/\/www.thecut.com\/article\/selena-gomez-wondermind-mental-health-start-up-mandy-teefey.html\" target=\"_blank\">\u201cWhat Happened at Wondermind?\u201d<\/a> based on interviews with current and former employees, alleged the company was falling apart. <\/p>\n<p id=\"anchor-084a2b\" class=\"body-graf\">\u201cThe accounts in the Cut article collectively show that, from the outset, Wondermind had no plan for its future \u2014 much less a plan for achieving a multi-billion dollar valuation,\u201d the suit said. <\/p>\n<p id=\"anchor-d477cd\" class=\"body-graf\">That article alleged that Teefey had a long-running substance abuse problem that impeded her capacity to helm the company, that Gomez sought to distance herself from Wondermind \u201cbased on a long-running family dispute\u201d with Teefey, and that Pierson had been ousted from the company based on a dispute with Teefey, the suit said. <\/p>\n<p id=\"anchor-a6b664\" class=\"body-graf\">The article, the suit claimed, proved the company was \u201cin a state of financial calamity\u201d and \u201cthere was no legitimate enterprise in the works.\u201d<\/p>\n<p id=\"anchor-c87d4c\" class=\"body-graf\">Two months later, in November 2025, investors sent the defendants a notice of rescission, demanding the return of their funds, they said in their suit. The defendants didn\u2019t respond \u201cin substance\u201d to the notice, the suit said, but \u201ccontinued to lull and mislead the plaintiffs.\u201d<\/p>\n<p id=\"anchor-264743\" class=\"body-graf\">After the notice of rescission was sent, Teefey allegedly contacted Bespoke\u2019s representatives suggesting that investors should not file a suit claiming the company had an escrow account to return the investments, this week\u2019s lawsuit states. When Andrew Resnick, part of Bespoke, followed up for details of the account and return of funds \u201cTeefey disappeared,\u201d the suit said. <\/p>\n<p id=\"anchor-47eb4a\" class=\"body-graf\">\u201cIn short, there was no \u2018escrow account\u2019 or a plan to return the Plaintiffs\u2019 investments,\u201d the complaint said. <\/p>\n<h2 id=\"anchor-27ffb0\" class=\"body-heading\">Misleading updates<\/h2>\n<p id=\"anchor-f2d690\" class=\"body-graf\">The suit detailed several alleged instances where investors were given updates that ended up being misleading or false. <\/p>\n<p id=\"anchor-b978cb\" class=\"body-graf\">In June 2022, the suit states, Pierson told the plaintiffs that Wondermind had grown to more than 150,000 subscribers in one month, that she had met with executives at other companies regarding \u201clarge advertising deals\u201d and anticipated closing \u201cat least $5M in ad revenue this year.\u201d She also said the company had \u201cinterest or confirmation for \u2018Cover Story\u2019 features from major celebrities including Camila Cabello, Tim Cook, Elton John, Drake, Megan Thee Stallion and more,\u201d the complaint said. <\/p>\n<p id=\"anchor-67ccdd\" class=\"body-graf\">She said the company was starting to build its \u201conline editorial experience\u201d and an ambassador\/referral program, the complaint said. She allegedly touted that the company had a potential future value of more than $4 billion.<\/p>\n<p id=\"anchor-540399\" class=\"body-graf\">That led the investors to believe the company had the foundation to operationalize, the suit said. <\/p>\n<p id=\"anchor-3406b7\" class=\"body-graf\">The suit stated that from 2022 to 2025, the plaintiffs \u201cproactively\u201d contacted Teefey and Pierson for updates. <\/p>\n<p id=\"anchor-1c65de\" class=\"body-graf\">\u201cWhen the Defendants would provide updates \u2014 either by email or on a phone call \u2014 they concealed the significant operational and financial issues at the Company. Indeed, the Defendants affirmatively misrepresented that the Company was performing well,\u201d the suit said.<\/p>\n<p id=\"anchor-48041f\" class=\"body-graf\">Overall, the suit accuses Wondermind and all defendants of securities fraud for allegedly misrepresenting the company\u2019s finances, Gomez\u2019s involvement, Pierson\u2019s business background and Teefey\u2019s fitness (as she had never held a similar startup CEO role). They are further accused of common law fraud and equitable fraud. <\/p>\n<p id=\"anchor-45ac19\" class=\"body-graf\">Pierson is additionally accused in the suit of securities fraud for alleged misstatements to investors, conversion for wrongfully using investment funds, and unjust enrichment.<\/p>\n<p id=\"anchor-f758a4\" class=\"endmark body-graf\">Wondermind is additionally accused in the suit of breach of contract \u2014 use of investor proceeds, rescission \u2014 failures to satisfy conditions precedent, breach of contract \u2014 breach of express representations and warranties.<\/p>\n<\/div>\n<script async=\"async\" data-cfasync=\"false\" src=\"https:\/\/pl30214220.effectivecpmnetwork.com\/9ab3d4df8a7e1a6171e16ddbf732cc19\/invoke.js\"><\/script>\r\n<div id=\"container-9ab3d4df8a7e1a6171e16ddbf732cc19\"><\/div>\r\n\n","protected":false},"excerpt":{"rendered":"<p>Superstar Selena Gomez and her mother are accused of defrauding investors of their mental health startup, Wondermind, in a federal lawsuit filed Thursday. Wondermind was co-founded by Gomez, her mother, Mandy Teefey, and Daniella Pierson in November 2021 and touts mental fitness practices and tools. The suit accuses Wondermind and its founders of falsely representing&#8230;<\/p>\n","protected":false},"author":1,"featured_media":43697,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/media-cldnry.s-nbcnews.com\/image\/upload\/t_nbcnews-fp-1200-630,f_auto,q_auto:best\/rockcms\/2026-08\/260813-selena-gomez-mandy-teefey-ch-1625-4967d8.jpg","fifu_image_alt":"","footnotes":""},"categories":[4],"tags":[],"class_list":["post-43696","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-hub"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/43696","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=43696"}],"version-history":[{"count":0,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/43696\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/media\/43697"}],"wp:attachment":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}