<p id=”par-1_56″>Selena Gomez and <a href=”https://www.cheatsheet.com/news/selena-gomezs-complicated-relationship-history-mom-mandy-teefey-posted-daughters-throwing-trash.html/”>her mom, Mandy Teefey</a>, are currently facing a lawsuit amid allegations of fraud and breach of contract. The mother-daughter <a href=”https://www.cheatsheet.com/news/selena-gomez-co-founded-a-mental-fitness-company-in-the-wake-of-her-bipolar-diagnosis.html/”>duo launched Wondermind</a>, a mental health startup, in 2021. Plaintiffs claim they invested money in the company after it misinformed them of how it could operate. The startup had issues long before this happened. </p>
<h2 class=”wp-block-heading” id=”h-selena-gomez-and-her-mom-mandy-teefey-face-a-lawsuit”>Selena Gomez and her mom, Mandy Teefey, face a lawsuit</h2>
<p id=”par-2_70″>Gomez, Teefey, and their former business partner Daniella Pierson currently <a href=”https://www.cheatsheet.com/news/prince-harry-lawsuits-cost-millions.html/”>face a lawsuit</a> that cites multiple accounts of fraud and breach of contract. In the complaint, plaintiffs claim they invested close to $1.2 million into Wondermind. They allege that its founders “falsely represented that the Company had the infrastructure, leadership, and resources necessary for the Company to launch into a profitable, one-of-its-kind mental health and wellness platform” (via <a href=”https://www.usatoday.com/story/entertainment/celebrities/2026/08/13/selena-gomez-wondermind-fraud-lawsuit-mom-mandy-teffey/91289690007/” target=”_blank” rel=”noreferrer noopener”>USA Today</a>).</p>
<p id=”par-3_34″>The alleged misrepresentations were that Gomez would be “intimately involved” in <a href=”https://www.cheatsheet.com/news/selena-gomez-mental-health-issues.html/”>the mental health</a> company’s publicity and that Pierson was a $200 million executive with a “full slate of revenue-generating initiatives” in the works.</p>
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<p id=”par-4_11″>The lawsuit alleges that none of these promises came to fruition.</p>
<p id=”par-5_45″>“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.”</p>
<p id=”par-6_7″>Pierson has denied the allegations against her.</p>
<p id=”par-7_57″>“Daniella categorically denies the allegations against her and welcomes the opportunity to present concrete documentation and financial records that establish the facts,” a representative said. “To be clear, she has never used investor funds for personal expenses. Quite the opposite: Daniella invested her own money into the business and did not draw a salary from the company.”</p>
<h2 class=”wp-block-heading” id=”h-selena-gomez-and-her-mom-also-received-allegations-of-mismanagement”>Selena Gomez and her mom also received allegations of mismanagement </h2>
<p id=”par-8_47″>The lawsuit cites a 2025 article from <a target=”_blank” href=”https://www.thecut.com/article/selena-gomez-wondermind-mental-health-start-up-mandy-teefey.html” rel=”noreferrer noopener”>The Cut</a> that dug into Wondermind. The article made a number of damning claims about Teefey, who was still involved in the day-to-day management of Wondermind. Pierson was allegedly pushed out, and Gomez sought to distance herself from the startup.</p>
<p id=”par-9_45″>Staffers at Wondermind also alleged that Teefey frequently used drugs while at work. They claim she snorted Ritalin and received IV drips of liquid Benadryl. They also claimed that the company repeatedly failed to pay them on time and dealt with dysfunction in the office.</p>
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<p id=”par-10_31″>“I will say this with the utmost certainty — no doubt, hesitation in my mind,” one staffer said. “Selena knew her mother was not well enough to be running that company.”</p>
<p id=”par-11_5″>Teefey has denied these allegations.</p>