Singer and actress Selena Gomez is facing fresh criticism from investors involved in her mental health company, Wondermind, after an attorney representing the investors accused her of using mental health advocacy and her celebrity influence to attract financial investment.
The allegations are part of an ongoing lawsuit involving Gomez, her mother Mandy Teefey and former business partner Daniella Pierson. The investors claim they were misled about Wondermind’s leadership, resources and prospects before investing nearly $1.2 million in the company. The allegations have not been proven in court.
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Investors accuse Selena Gomez of using her influence
Jeffrey Neiman, an attorney representing the investors, told TMZ that Gomez’s name and influence played a major role in attracting funding for Wondermind.
“Mental health is not a marketing strategy, and should never be used as a vehicle for personal financial gain,” Neiman said.
He further alleged that Gomez was not simply associated with Wondermind but was central to the company’s pitch to potential investors.
According to the investors’ lawsuit, Gomez was presented as Wondermind’s “head of marketing” and was expected to use her enormous social media following to promote the company, attract an audience and help expand the business.
The investors claim they relied on representations about Gomez’s involvement when deciding to put money into the company.
What is Wondermind?
Wondermind is a mental health-focused company founded by Gomez, Teefey and Pierson. The business was launched with the aim of creating resources and conversations around mental wellness.
Gomez has previously spoken publicly about mental health and her own experiences, making the subject an important part of her public identity.
The investors now allege that Gomez’s reputation and public influence helped create confidence in the company while her actual involvement later became more limited.
The lawsuit claims the investors were eventually left concerned about the company’s financial position and management.
Investors say Gomez distanced herself
The investors allege that Selena Gomez helped attract people to Wondermind but later distanced herself from the company after funding had been secured.
They claim the company struggled with its operations and that important information was not adequately communicated to them.
The lawsuit also names Selena Gomez’s mother, Mandy Teefey, and former business partner Daniella Pierson.
However, Pierson has denied the allegations, while Gomez has strongly rejected claims that she engaged in fraud or wrongdoing.
Selena Gomez fights back
Gomez has now taken legal action to have the lawsuit dismissed.
On August 26, 2026, her attorney, Mathew Rosengart, filed a motion arguing that the allegations against the singer are vague, contradictory and legally insufficient.
According to PEOPLE, Rosengart said Gomez never managed Wondermind and that management was handled by Teefey and Pierson, who served as the company’s co-CEOs and board members.
Gomez’s legal team also argues that she was a minority investor and consultant rather than someone responsible for the company’s daily operations.
Her lawyer has previously described the allegations against her as “completely meritless” and said the legal team would vigorously defend her.
Latest legal development
The latest development means the dispute is now moving into another important stage.
Selena Gomez’s motion asks the court to dismiss the claims against her. Her legal team has also indicated that it may seek sanctions against the plaintiffs over what it considers improper allegations.
The investors, however, continue to maintain that they were misled when they invested in Wondermind.
According to reports, the investors put nearly $1.2 million into the company and allege that they only learned about serious problems within the business after media reports highlighted difficulties surrounding its operations.
Mental health advocacy at the centre of controversy
The dispute has attracted significant attention because Wondermind was created around mental health, an issue Gomez has frequently discussed publicly.
Gomez has built much of her advocacy around encouraging people to speak openly about emotional wellbeing and seek help when necessary.
The lawsuit has therefore created an uncomfortable situation for the star, as the allegations challenge the relationship between her public advocacy, celebrity influence and business interests.
Still, the allegations remain claims made by the investors and have not been established as facts by a court.
What happens next?
The court will ultimately determine whether the claims against Gomez can proceed.
For now, Selena Gomez is fighting to have the lawsuit dismissed, while the investors continue pursuing their allegations against her and the other defendants.
The case is likely to attract further attention as the legal proceedings develop, particularly because of Gomez’s enormous global profile and the sensitive nature of the mental health business at the centre of the dispute.
For Selena Gomez, the immediate priority is defending herself against the allegations and attempting to distance her reputation from claims of financial wrongdoing.
The controversy also highlights the risks celebrities can face when their names and personal brands become closely connected to business ventures.
Until the court reaches a decision, the allegations against Gomez should not be treated as established facts.
Read more about the latest legal development involving Selena Gomez and Wondermind on PEOPLE.
