Selena Gomez Is Sued For Allegedly Defrauding Investors

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Investors in Selena Gomez’s struggling mental health startup, Wondermind, sued Gomez, her mother and the company’s co-founder in federal court Thursday, accusing them of securities fraud for promising initiatives that never materialized without properly communicating with the investors whose money was allegedly “funding the collapse.”

Wondermind SRS 44 and Bespoke Wondermind SPV, limited liability companies who say they invested nearly $1.2 million in Gomez’s startup, filed the lawsuit in Delaware federal court on Thursday, accusing the defendants of multiple counts of fraud and breach of contract.

The plaintiffs said they had invested in the company because they were falsely informed it had the infrastructure necessary to function, including proper leadership, partnerships and advertising deals, alleging these “representations were false.”

“The partnerships did not exist. The initiatives never materialized. The app was never built. And for three years, while the Company quietly collapsed around them, not one of its founders, officers, or directors said a word to the investors whose money was funding the collapse,” the plaintiffs say in their complaint.

The Wondermind investors say they were repeatedly misled by the company and its founders. They cited a meeting with Pierson in May 2022, and email correspondence the following month, in which she allegedly misrepresented her own business success and said Wondermind had already secured partnerships with JP Morgan and Fidelity, expected to generate $5 million in ad revenue that year alone and had already grown to 150,000 subscribers. Citing those points, Pierson sent the investors a document suggesting the company’s valuation could eventually surpass $4 billion. The suit alleges these were misrepresentations, and that the investors did not learn of issues at Wondermind until Forbes published an article revealing Pierson had exaggerated her success. The investors say they then asked Teefey for an explanation, who alleged Pierson had misappropriated company funds to pay for her New York apartment rent and other personal expenses. The suit notes some of Wondermind’s key plans, including an app, never came to fruition, and alleges the defendants continued to misrepresent the health of the company as recently as April.

 

https://www.forbes.com/sites/conormurray/2026/08/13/selena-gomez-and-wondermind-startup-sued-for-allegedly-defrauding-investors/