Selena Gomez and her mother, Mandy Teefey, are facing a lawsuit alleging they defrauded investors in their mental health company, Wondermind.
Two companies, Wondermind SRS 44 LLC and Bespoke Wondermind LLC, filed the suit, claiming they invested over $1 million based on false representations.
The lawsuit names Wondermind, Selena, Mandy, and former business partner Daniella Pierson as defendants.
According to the complaint, Selena and Mandy made misleading statements about the company's infrastructure, leadership, and resources to secure investments.
The investors say Selena appeared heavily involved in promotional efforts but allegedly did little after the money was invested.
The suit also claims Daniella made false statements about her business track record and potential returns.
The investors allege that for three years, while the company collapsed, no one informed them of the problems.
They only learned of the issues after The Cut published an exposé in September 2025, describing the company as being in 'utter disarray.'
The article detailed Mandy's alleged substance abuse and mismanagement, as well as Selena's 'abject dereliction of her duties.'
Mandy denied the allegations, calling them lies spread by disgruntled employees.
The investors are suing for securities fraud and seeking unspecified damages, including the return of their investments.