Selena Gomez, her mother Mandy Teefey, and co-founder Daniella Pierson face a new federal lawsuit in Delaware. The legal action alleges that the trio defrauded investors regarding their mental health startup, Wondermind.
The plaintiffs, Wondermind SRS 44 LLC and Bespoke Wondermind LLC, invested $1.2 million in the platform. They claim that the founders misrepresented the company's financial health, infrastructure, and resources. According to court filings, the startup promoted itself as a profitable wellness platform with major partnerships, but the plaintiffs assert these partnerships never existed and the promised app was never built.
The lawsuit argues that investors were told Gomez would actively serve as head of marketing, utilizing her large following for promotion. Instead, the plaintiffs claim she failed to meet her contractual obligations to the company. The suit further alleges that the brand’s valuation of $95 million was inflated and that the founders concealed operational failures even as the company collapsed.
Legal documents describe a situation where the startup struggled to pay basic expenses like vendor and employee wages. Investors state they were misled by positive updates while the company was in financial ruin. A key investor reported that when he attempted to address these issues, the founders provided evasive or bizarre responses.
Daniella Pierson has issued a statement denying the allegations and plans to present financial records to clarify the facts. She also denies claims that investor funds were diverted for personal use. Gomez and Teefey have not provided comments regarding the lawsuit at this time.