Selena Gomez accused of fraud by mental-health startup investors

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeInvestorSelena Gomez accused of fraud by mental-health startup investorsInvestors claim the pop star failed to deliver on promises to leverage her global celebrity and social-media following to promote Wondermind, which collapsed last yearAuthor of the article:Sabrina Willmer and David Voreacos You can save this article by registering for free here. Or sign-in if you have an account.Selena Gomez attends the 83rd Annual Golden Globe Awards at The Beverly Hilton on Jan. 11, 2026 in Beverly Hills, California. Photo by Monica Schipper/Getty Images filesPop star Selena Gomez is being accused of fraud by investors who claim she failed to deliver on promises to leverage her global celebrity and social-media following to promote her mental-health startup, which collapsed last year.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe startup, Wondermind Global Inc., claimed a valuation of US$95 million when it sought money from investors in 2022 to develop products, including a mobile app, according to a lawsuit filed Thursday in Delaware federal court. Gomez, one of the founders, served as “chief impact officer” and head of marketing, the suit said.But Wondermind lied about its prospects, and never developed the products or revenue it had promised, according to the suit filed by five investors. Gomez ignored her contractual obligations to the company in part because of her “long-running personal struggles with her mother,” Mandy Teefey, who was a co-founder and co-chief executive, the investors claim.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try again“The initiatives never materialized,” lawyers for the investors wrote in the complaint. “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.”Gomez started Wondermind in 2021 with her mother and Daniella Pierson, the founder of pop culture newsletter Newsette. It purported to capitalize on the public fascination with mindfulness, focusing on “mental fitness” by promoting routines to maintain mental health similar to how the way people use gyms to stay physically fit.Gomez, Teefey and Pierson, who were all named as defendants in the suit, didn’t immediately respond to emails seeking comment. An email to Wondermind wasn’t immediately returned.In an early-stage financing round in 2022, the company raised US$5 million from the likes of tennis icon Serena Williams’s venture fund, top-tier venture firms Lightspeed Venture Partners and Sequoia Capital. That round included US$1.2 million invested by the five individuals who filed the suit, including former Allergan CEO Brent Saunders.The investors were lured by the promise that Wondermind would leverage an audience of more than 500 million people through Gomez’s social media channels, according to the lawsuit.“Plaintiffs understood that Wondermind’s value as a nascent company lay largely in Gomez’s involvement, including her ability to market the company to a pre-existing, substantial, and loyal follower base,” the investors said in the complaint.The company falsely represented that it had secured institutional employer partnerships with JPMorgan Chase & Co. and Fidelity and had started a number of “revenue-generation initiatives, including advertising deals, celebrity cover stories, and a groundbreaking app,” according to the lawsuit.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.The investors said they were alerted to the company’s financial distress by a September 2025 article published in The Cut. The article detailed “Gomez’s abject dereliction of her duties to the company and, indeed, her active efforts to distance herself from it,” according to the complaint.The plaintiffs accused the defendants of concealing the “company’s operating, financial and management issues,” adding that they were only minority investors with “limited information rights.” The investors are now seeking to recoup their investments in bringing the lawsuit.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.