American singer Selena Gomez and her mother, Mandy Teefey, are facing a lawsuit from investors who put nearly $1.2 million into their mental health company, Wondermind.
The investors accuse Gomez, Teefey and former business partner Daniella Pierson of securities fraud and breach of contract, alleging that they misrepresented Wondermind’s leadership, infrastructure and resources while seeking investment.
The lawsuit also claims Gomez presented herself as heavily involved in the company before the investment but later distanced herself from the business.
The investors allege that they did not learn the full extent of Wondermind’s financial and operational problems until reports about the company’s struggles emerged in 2025.
Teefey has denied allegations of substance abuse and mismanagement, calling the claims false and accusing former employees of distorting the truth.
The investors are seeking the return of their money and unspecified damages.