What investors say went wrong at Selena Gomez's mental health startup Wondermind

Selena Gomez group retired to create "the world's first intelligence fittingness ecosystem." Instead, the startup is becoming her ain individual headache.

A national suit revenge Thursday offers a elaborate relationship of what investors opportunity went incorrect astatine Wondermind — from an app that was ne'er built to awesome firm partnerships they allege ne'er existed.

Gomez launched the startup successful 2021 alongside her mother, Mandy Teefey, and Daniella Pierson, a business partner. The suit accuses Gomez, her cofounders, and Wondermind of defrauding investors, among different claims.

The investors see Brent Saunders, the CEO of Bausch + Lomb and erstwhile CEO of Allergan, and entrepreneur and real-estate investor Marc Roberts.

"The Plaintiffs invested astir $1.2 cardinal successful Wondermind Global Inc. because the Defendants falsely represented that the Company had the infrastructure, leadership, and resources basal for the Company to motorboat into a profitable, one-of-its-kind intelligence wellness and wellness platform," the title says.

The investors said Wondermind's cofounders besides misrepresented cardinal parts of the company's business and maturation plans. Specifically, that Gomez — a world-famous character and vocalist — would play a awesome domiciled astatine the institution arsenic its caput of marketing; that Pierson secured partnerships pinch firms specified arsenic JPMorgan and Fidelity; and that "revenue-generating initiatives" were already underway.

The investors are seeking the return of their investments aliases damages, arsenic good arsenic costs and attorneys' fees.

"The partnerships did not exist. The initiatives ne'er materialized. The app was ne'er built. And for 3 years, while the Company softly collapsed astir them, not 1 of its founders, officers, aliases board said a connection to the investors whose money was backing the collapse," the title says.

Wondermind has made immoderate offerings disposable to users. Its website features articles, interviews, and worksheets astir intelligence health. The startup besides sends retired a newsletter and has produced 2 podcasts.

Gomez, Teefey, and Pierson did not respond to requests for remark from Business Insider. A lawyer representing Gomez told People that the allegations against her were "completely meritless."

"The allegations that Selena Gomez engaged successful immoderate measurement whatsoever successful immoderate purported 'fraud' aliases different wrongdoing are wholly meritless, some factually and legally," Mathew Rosengart told the outlet connected Saturday.

A typical for Pierson told USA Today successful a connection that she "categorically denies the allegations against her and welcomes the opportunity to coming actual archiving and financial records that found the facts."

"To beryllium clear, she has ne'er utilized investor costs for individual expenses. Quite the opposite: Daniella invested her ain money into the business and did not tie a net from the company," the connection said.

Teefey has not responded publically to the lawsuit.

In the lawsuit, the investors said they were near successful the acheronian astir problems plaguing Wondermind, and were unaware of the "utter financial and operational disarray" until The Cut published an article profiling the institution successful September 2025.

The article elaborate allegations of guidance problems that began soon aft the startup's 2021 launch. At the time, Teefey and Pierson served arsenic co-CEOs, while Gomez was named main effect officer.

Staffers told The Cut that Teefey, who headed the company's Los Angeles office, had an erratic activity style and fought pinch Pierson, who led the New York office. Pierson near the startup successful 2023 amid the tensions, The Cut reported. Meanwhile, staffers told The Cut that Gomez distanced herself from Wondermind owed to a conflict pinch Teefey.

Business Insider and Forbes earlier published abstracted investigations into Pierson connected the aforesaid time successful August 2025. Business Insider recovered discrepancies betwixt subscriber and business figures Pierson had publically cited for the Newsette Media Group and soul records. The Forbes investigation is cited successful the investors' lawsuit.

After seeing the Forbes report, the investors contacted Teefey, according to the complaint. Teefey told them that Pierson had "misappropriated investor funds" earlier her exit and misled the startup's executives to conceal the alleged misconduct, the title says.

After The Cut's article was published, the investors said they sent the cofounders a announcement demanding that Wondermind return their investments.

Teefey exchanged emails pinch 1 of the investors aft the announcement was sent, but ne'er addressed the demands, the title says. At 1 point, according to the complaint, Teefey told the investors that Wondermind had created an escrow relationship to return their money, but the title alleges nary specified relationship existed.

"In short, location was nary 'escrow account' aliases a scheme to return the Plaintiffs' investments," the suit says. "Instead, accordant pinch the yearslong strategy of deceit that the Defendants person perpetrated, it appears that Teefey fabricated this relationship to further lull the Plaintiffs, and to promote them to forbear from filing suit."