Investors Sue Selena Gomez for Fraud in Wondermind Collapse

Five investors, including former Allergan CEO Brent Saunders, filed a securities fraud lawsuit in Delaware federal court on August 14, 2026, against Selena Gomez and her co-founders, Mandy Teefey and Daniella Pierson. The plaintiffs allege they were deceived into investing $1.2 million of a $5 million early-stage financing round in 2022 for the mental-health startup Wondermind Global Inc.

The lawsuit claims the company collapsed after failing to develop promised products, including a mobile app, and lying about its revenue prospects and institutional partnerships with Fidelity and JPMorgan Chase & Co. Investors allege they were lured by the promise of leveraging Gomez's social media following of over 500 million people. The suit further asserts that Gomez, serving as chief impact officer and head of marketing, ignored her contractual obligations due to personal struggles with her mother, Mandy Teefey.

Additional allegations target Teefey, the company's co-CEO, citing gross mismanagement and substance abuse. These claims reportedly surfaced in a September 2025 expose in The Cut, which also alerted investors to the company's financial distress. Teefey has denied the substance abuse allegations, attributing them to disgruntled employees. The plaintiffs are seeking the return of their investments and legal fees.