Selena Gomez and her mother sued for millions in massive fraud case

Pop star and actress Selena Gomez and her mother, Mandy Teefey, are at the center of a major lawsuit. According to legal documents obtained by TMZ, two investment firms — Wondermind SRS 44 LLC and Bespoke Wondermind LLC — have filed suit against them and their former partner, alleging they defrauded investors by soliciting over a million dollars into a venture that was secretly collapsing from within.

The company, Wondermind Global, a mental health startup, was founded by Selena, her mother, and former partner Daniella Pierson. Investors claim the founders misled them into believing the firm possessed the infrastructure and leadership necessary for success, solely to secure investment funds. Gomez was recruited to spearhead marketing efforts, appearing on television and giving numerous interviews to project an image of deep involvement. However, investors allege that once the funds were secured, Selena effectively disappeared from the project.

For three years, while the company struggled, investors remained unaware of the internal turmoil. The truth emerged in September 2025 following an investigative report in The Cut, which described the company as being in total disarray, struggling to meet basic obligations such as payroll and supplier payments.

"It is unfortunate that a handful of disgruntled employees who have a score to settle with me can spread lies about me and distort the truth. It is even more disappointing that the media is willing to amplify their lies," stated Mandy Teefey, who denies allegations of substance abuse and mismanagement.

Amid personal conflicts with her mother, Gomez reportedly demonstrated total neglect of her professional duties. Investors are now suing for securities fraud, demanding the return of their capital along with additional damages.