Industry Odisha Bureau, Aug 14: Several investors have sued Selena Gomez’s mental health startup, Wondermind. Allegedly, they were misled about the company’s financial health, business plans and Gomez’s involvement.
Notably, Wondermind was launched in the year 2021. Therein, Gomz was listed as a co-founder, chief impact officer, and head of marketing. The platform was created to promote mental wellness and provide users with resources to support their mental health.
As per the lawsuit, 5 investors invested about $1.2 million in Wondermind in 2022. They expected Gomez to use her celebrity status and large social media following to help grow the company.
Instead, the investors claim they were kept unaware of the startup’s financial difficulties as the company struggled.
Further, the lawsuit also alleges that Wondermind was valued at $95 million in 2022. Investors were led to expect partnerships with companies including JP Morgan, advertising deals, celebrity cover stories and a new app.
The investors claim those plans never materialised. They allege that the proposed partnerships did not exist and that the app was never built.
Selena Gomez’s mother, Mandy Teefey, and former business partner Daniella Pierson have also been named in the lawsuit. The defendants have been accused of securities fraud, common law fraud and breach of contract, among other claims. They are seeking to recover their investments, damages, and legal fees.
The lawsuit also refers to a 2025 report by The Cut about internal conflicts and problems at Wondermind.
