The lawsuit was filed in federal court in Delaware on Aug. 13 by Wondermind SRS 44 LLC and Bespoke Wondermind LLC. The investors allege that Gomez, Teefey and Pierson misrepresented the company’s leadership, resources and prospects when they invested in 2022.
According to the complaint, investors were told that Gomez would be “actively building the company,” that Pierson was highly qualified to serve as co-CEO alongside Teefey and that Wondermind already had a “full slate of revenue-generating initiatives.” The plaintiffs now argue that those representations were false.
The investors also claim that Wondermind’s financial and operational problems continued for years without being properly disclosed to them. They say they only became aware of the extent of the company’s problems after a 2025 investigation by The Cut examined what was happening inside the startup.
What The Cut reported
Published in September 2025, The Cut’s investigation painted a picture of a company struggling with financial problems, internal tensions and management issues.
According to current and former employees interviewed for the report, Wondermind’s finances had become increasingly difficult by 2023 and 2024. Employees described delayed paychecks, unpaid vendors, cuts to benefits and repeated uncertainty over the company’s future. By the end of 2024, only two of the company’s original seven West Coast employees remained, The Cut reported.
One employee recalled Teefey telling staff in 2023 that she and Gomez had invested millions of dollars of their own money into the company. The employee remembered Teefey saying, “I’m carrying the entire company,” while explaining that she was trying to keep the business running.
The report also described growing frustration among employees over Teefey’s management. Staffers alleged that she sometimes behaved erratically and, according to some employees, appeared intoxicated at work. Teefey denied those allegations.
The financial problems became particularly visible in 2025. Employees were told they would not be paid on time and that their health, dental and vision insurance would be lost. Teefey later described the episode as “probably one of the worst days of my life.” Staff payments were eventually resolved, but another payroll failure followed weeks later.
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The Cut also reported tensions surrounding Gomez’s role in the company. Employees said she appeared largely removed from Wondermind’s day-to-day operations and that getting her to promote the company publicly could be difficult. One former employee described it as “pulling teeth.”
Some employees also described an apparently strained relationship between Gomez and her mother. One staffer told The Cut: “I can tell there’s distance between the two of them, a lot of hurt.”
The investigation further reported that employees questioned why Gomez had not stepped in more directly as Wondermind’s financial situation deteriorated. The Cut said several former employees believed Gomez knew her mother was struggling to run the company and should have taken more responsibility. Those are the employees’ allegations, not established findings.
Investors say the problems were hidden
The new lawsuit essentially brings those earlier reports into the investors’ dispute.
The plaintiffs argue that the problems described by The Cut were not disclosed to them when they invested. They allege that, while Wondermind was experiencing serious financial and operational difficulties, the company’s founders and executives continued providing reassuring updates.
The investors also claim that after they sought to recover their money, Teefey indicated that an escrow account would be established to facilitate refunds. According to the lawsuit, that account never materialized.
They are seeking the return of their investments, damages and legal fees.
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Gomez denies the allegations
Gomez has strongly rejected the accusations.
Her attorney, Mathew Rosengart, called the allegations “completely meritless” and said Gomez’s legal team intends to file a motion to dismiss the claims. He said the singer’s team would “vigorously defend” her against what he described as false allegations.
Pierson has also denied the allegations, while Teefey has not publicly responded to the lawsuit. A source close to Gomez has said she invested millions of dollars in Wondermind herself during its financial difficulties, while stressing that she was not involved in the company’s daily operations.
For now, the allegations remain allegations and have not been established in court.
The lawsuit nevertheless puts Wondermind’s troubled history back in the spotlight — and gives new weight to questions that were already being raised about the startup’s finances, leadership and the roles played by Gomez and her mother.
