Selena Gomez's Mental Health Startup Sued by Investors

American actress and singer Selena Gomez launched the startup Wondermind in 2021 together with her mother, Mandy Teefey, and business partner Daniella Pierson, with the aim of building "the world's first mental health ecosystem." Five years on, however, the project has become a personal headache for her: in a federal lawsuit filed on Thursday, investors detail what they say went wrong at the company — pointing to an app that was never built and, they claim, major corporate partnerships that never actually existed.

The lawsuit accuses Gomez, her co-founders and Wondermind itself of defrauding investors. Plaintiffs include Bausch + Lomb CEO and former Allergan chief Brent Saunders, as well as entrepreneur and real estate investor Mark Roberts. "Plaintiffs invested nearly $1.2 million in Wondermind Global Inc. because defendants falsely represented that the company had the infrastructure, leadership and resources necessary to launch a profitable and distinctive mental health platform," the complaint states.

Investors say the co-founders also misrepresented key elements of the company's business and growth plans: claims that the globally famous actress and singer Gomez was actively serving as head of marketing, that Pierson had signed partnership agreements with companies such as JPMorgan and Fidelity, and that revenue-generating projects were already up and running — none of it, investors say, was true. "The partnerships didn't exist. The projects never materialized. The app was never built. And for three years, as the company slowly collapsed, not one of its founders, officers or directors said a word to investors," the complaint states.

Gomez, Teefey and Pierson did not respond to Business Insider's request for comment. Gomez's attorney called the allegations against her "baseless" in a statement to People: "Any claim that Selena Gomez participated in fraud or other unlawful conduct is unsupported by the evidence and legally meritless," said attorney Matthew Rosengart. Pierson's representative, meanwhile, told USA Today that she categorically denies the allegations, that she never used investor funds for personal purposes, and that she in fact put her own money into the business and never drew a salary from the company.

Investors say they remained unaware of the company's problems until September 2025, when The Cut published an article about Wondermind. The piece detailed management troubles that began not long after the startup launched in 2021: at the time, Teefey and Pierson served as co-CEOs, while Gomez held the title of "chief impact officer." According to staffers, Teefey, who ran the Los Angeles office, had an erratic management style that put her at odds with Pierson, who ran the New York office; amid that tension, Pierson left the company in 2023, and Gomez distanced herself from the startup over disagreements with Teefey.

The episode serves as another reminder of just how risky celebrity-backed startups can be: a famous founder's name may draw in investors, but it is no substitute for operational transparency and real results.