Selena Gomez and her mother, Mandy Teefey, are being sued by two investor groups who claim they were misled into investing more than $1 million in Wondermind, the mental health company Selena co-founded. The lawsuit alleges the founders painted an overly optimistic picture of the company's leadership, financial health, and future while it was allegedly unraveling behind the scenes. According to the complaint, investors say Selena's public appearances and interviews helped convince them the company had strong leadership and that she was actively involved. They now claim she played little role in the business after they invested, while former co-founder Daniella Pierson allegedly overstated the company's prospects and potential returns. The lawsuit further claims investors weren't aware of the company's serious problems until a 2025 media investigation described Wondermind as being in "utter disarray," citing unpaid employees and vendors, management turmoil, and allegations that Mandy Teefey struggled with substance abuse. Mandy has repeatedly denied those allegations and previously called them false and the product of disgruntled former employees. The investors are seeking damages for alleged securities fraud, including repayment of their investment and additional compensation.