Selena Gomez and her mother, Mandy Teefey, are facing a lawsuit that accuses them of defrauding investors out of over $1 million in their mental health company, Wondermind Global. The lawsuit, filed by two investment companies, claims Selena and Mandy misrepresented the company’s infrastructure, leadership, and resources to secure investments while the business was secretly crumbling.
The investors allege that Selena made appearances on TV shows and gave interviews to promote the business, creating the illusion of heavy involvement. However, after the money was invested, they claim she “didn’t do much of anything” . They also allege that Mandy struggled with a “substance abuse disorder” and “gross mismanagement” of the company, and that Selena actively distanced herself from it due to personal struggles with her mother.
The investors claim they had no idea about the company’s issues until The Cut published an exposé in September 2025, which described Wondermind as being in a “state of utter disarray”. The article detailed how the company struggled to meet basic obligations, including paying vendors and employees on time.
Mandy Teefey has denied the substance abuse claims, calling them “lies” spread by “disgruntled employees.” She said, “It’s unfortunate that a few disgruntled employees with an ax to grind can spread lies about me and distort the truth”. The investors claim that when they confronted Mandy, she tried to blame former business partner Daniella Pierson, who had already left the company. Selena has not publicly commented on the lawsuit.
