Selena Gomez's mental health startup Wondermind is facing a breach of contract lawsuit from a former New York landlord who alleges the company owes more than $800,000 in back rent and warns that bankruptcy may be imminent.
The dispute, detailed by the Daily Mail, stems from a February 2025 lawsuit filed by Genius Sports Media Inc. against Wondermind Global Inc.
The complaint alleges the company failed to pay $813,027.18 in rent tied to a sublease at 393-401 Lafayette Street in Manhattan. The sublease ran from Aug. 1, 2022, through Oct. 30, 2024.
According to court filings, Wondermind was required to pay fixed and additional rent, including utilities and other building-related charges.
The February 2025 complaint states, "Under the Sublease, additional rent included an electricity charge, real estate taxes, building overtime costs, and building improvement charges, in the event Landlord was required to pay such charges."
The filing also notes the company was required to provide "a security deposit of $212,980.24."
The lawsuit alleges that Wondermind fell behind beginning in spring 2023. It states, "Wondermind failed to timely pay months of fixed and additional rent under the Sublease," adding that the company did not pay total rent from May 2023 through October 2024.
A notice of default issued in August 2024 claimed the "total amount of monies owed for fixed and additional rent as of August 21, 2024 was $875,917.36."
After the case was filed, Wondermind paid $213,000, reducing the alleged outstanding balance to $813,027.18.
Bankruptcy Concerns Raised in Wondermind Rent Lawsuit
In more recent filings, attorneys for Genius Sports expressed concern about Wondermind's financial condition. They wrote that the company "continues to express that it may be in dire financial straits" and argued that "the prospect of bankruptcy appears quite real."
The attorneys further warned, "Every day that passes poses a threat that Wondermind may file for bankruptcy or otherwise liquidate its assets, harming the chances that Genius Sports may have in recovering any funds due to it under the Sublease."
The landlord's legal team also accused Wondermind of submitting court filings containing "factual inaccuracies and blatant misstatements concerning communications between the parties."
Litigation has been slowed in part by communication issues between Wondermind and its counsel. In a court filing, the company's attorney cited his "purported inability" to reach his client. He wrote, "I attempted several times last week without success to reach our client by email and telephone in a final attempt to resolve the Motion and, if the Motion were to proceed, how we should respond. I do not know why our client has been unreachable."
The court granted the attorney permission to file a motion to withdraw as counsel by the end of January, though no such filing has yet appeared on the docket. A January 9, 2026 filing indicates a conference was held earlier that month, and the matter has been adjourned until April. Genius Sports is awaiting a ruling on its motion for summary judgment, which could allow the case to proceed without a trial.
Financial Struggles and Internal Turmoil at Wondermind
The lawsuit follows broader financial challenges at Wondermind, which was co-founded in 2021 by Gomez, her mother Mandy Teefey and media entrepreneur Daniella Pierson. Pierson left in 2023.
According to Forbes, employees, freelancers and vendors alleged in 2025 that they had not been paid since March of that year. Staff members reported that Teefey informed them she had taken a loan against her home to help cover company debts.
A spokesperson told Forbes, "Like many startups, Wondermind has been working through its own set of growing pains. In the coming days, we will be transitioning into a new chapter... dues will be paid by Monday (May 12)."
Reports last year indicated the company missed payroll twice and laid off approximately 60 percent of its staff. Teefey also faced accusations from anonymous employees alleging erratic behavior and drug use, claims she has denied.
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