Selena Gomez and Mom Sued for Allegedly Defrauding Investors as Business Fell Apart

Selena Gomez and her mother, Mandy Teefey, deceived investors into pouring over a million dollars into their business ... while the company was secretly crumbling from within and Mandy struggled with a drug problem ... this according to a new lawsuit.

TMZ obtained a lawsuit filed by two companies, Wondermind SRS 44 LLC and Bespoke Wondermind LLC, over the pop star's mental health company, Wondermind Global. The companies are suing Wondermind itself, Selena, Mandy, and their former business partner, Daniella Pierson.

The companies claim Selena and her mom made false representations about the infrastructure, leadership, and resources necessary for the company to launch into a profitable platform ... all to get investments from them. The companies say they invested over $1 million ... based on Selena making the rounds on TV shows and speaking in interviews about the business.

The suit says Selena made it appear she was heavily involved ... but claims she didn't do much of anything after they invested the money. The investors also claim Daniella made false representations about her past successes in the business world and the amount of money they would see on return.

The companies claim "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.”

The lawsuit alleges that the investors did not learn about Wondermind's issues until The Cut published an expose in September 2025 ... which described the company as being in a "state of utter disarray."

The investors say the article outlined Mandy's alleged substance abuse disorder and her gross mismanagement of the company, along with Selena's "abject dereliction of her duties to the company" and her active efforts to distance herself from it due to her personal struggles with her mother.

The Cut article also referenced how the company struggled to meet its most basic obligations, like paying vendors and employees on time.

Mandy denied the substance abuse claims and that the company was a mess. She said, "It's unfortunate that a few disgruntled employees with an ax to grind can spread lies about me and distort the truth. Even more disappointing that the media is willing to amplify their lies."

In the lawsuit, the investors said when they confronted Mandy about the claims in the article ... she tried to blame Daniella, who had already left the company.