Wondermind Faces Mounting Legal and Financial Troubles
Selena Gomez's mental health company Wondermind is confronting severe financial and legal challenges, as a new lawsuit reveals allegations of nearly $1 million in unpaid rent to a former landlord in New York City. The media startup, co-founded by Gomez, her mother Mandy Teefey, and Daniella Pierson in 2021, has been embroiled in controversy over the past year, including claims of drug use and mismanagement, which it has denied.
Lawsuit Details and Bankruptcy Concerns
In a breach of contract lawsuit filed by Genius Sports Media Inc. against Wondermind Global Inc. in February 2025, the sports company alleges that Wondermind owes $813,027.18 in back-rent, with the debt remaining unpaid a year later. The complaint states that Wondermind failed to pay fixed and additional rent from May 2023 through October 2024, despite a notice of default issued in August 2024.
Genius Sports Media is currently awaiting a decision on its motion for summary judgment, which could determine whether the case proceeds without a trial. In recent filings, the company's attorneys expressed fears that Wondermind might declare bankruptcy, jeopardizing any chance of recovering the owed funds. "The prospect of bankruptcy appears quite real," they argued, citing Wondermind's "dire financial straits" and reports of financing issues.
Communication Breakdowns and Legal Delays
The litigation has been hampered by communication problems, as Wondermind's attorney cited difficulties in reaching his client. In a November 2025 filing, the attorney stated, "I attempted several times last week without success to reach our client by email and telephone." This has led to delays in court proceedings, with the attorney even seeking permission to withdraw from the case, although no such motion has been filed yet.
Genius Sports has accused Wondermind of submitting filings with "factual inaccuracies and blatant misstatements," further complicating the legal battle. A conference held in early January 2026 resulted in the hearing being adjourned to April, prolonging the resolution.
Financial Struggles and Past Allegations
Wondermind's financial woes are not new. Reports from last year indicated that the company faced a financial crisis, allegedly missing payroll twice and laying off 60% of its employees. An email from October 2023, sent by then-Chief Operating Officer Bhavik Trivedi and copied to Mandy Teefey, highlighted the company's "severe financial burden" and "incredibly complicated financial situation."
Additionally, Teefey faced accusations of erratic behavior and turning her office into a "drug den," including claims of snorting Ritalin, which she vehemently denied. Despite these challenges, Wondermind launched new projects, such as the docuseries and podcast "Suspicious Minds" in October 2025, in partnership with Agoric Media.
Future Prospects and Ongoing Developments
In a November 2025 interview, Mandy Teefey expressed optimism about Wondermind's future, revealing plans for five projects in development and an app set to launch in the first quarter of the following year. She emphasized the company's goal to provide mental health resources, stating, "We are super blessed to be moving forward."
However, Wondermind's website and social media pages show no recent updates, suggesting potential stagnation. The lawsuit details that Wondermind was subleased offices at 393-401 Lafayette Street in New York from August 2022 to October 2024, with obligations including a security deposit of $212,980.24 and late fees for missed payments.
As the legal battle continues, both parties await further court proceedings, with Daily Mail having reached out to attorneys for comment. The outcome could significantly impact Wondermind's ability to operate amid its financial and reputational challenges.
