Policy & Regulation
Investors sue Selena Gomez, alleging fraud over her Wondermind startup
Investors sued Selena Gomez, alleging securities fraud and breach of contract tied to her mental health startup Wondermind, in which they say they invested nearly $1.2 million.
Singer and actress Selena Gomez and her mother are being sued over their mental health startup, Wondermind. The plaintiffs say they invested nearly $1.2 million in the startup and are accusing Gomez of securities fraud and breach of contract. The news was first reported by Forbes.
The lawsuit alleges that Wondermind, which launched in 2021 to offer daily mental health resources to users, failed to deliver on its commitments without informing investors, and that Gomez did not market the startup after promising to do so. The complaint says investors were unaware of the company’s troubles until a September 2025 story from The Cut uncovered them. “Gomez purported to sign a contract obligating her to perform and then ignored it,” the complaint reads. “The partnerships did not exist. The initiatives never materialized. The app was never built. And for three years, while the Company quietly collapsed around them, not one of its founders, officers, or directors said a word to the investors whose money was funding the collapse.”
The investors allege that Gomez and Wondermind misrepresented the company’s finances and overstated the extent of Gomez’s involvement, and are seeking to recover their investments and legal fees. Wondermind did not respond to a request for comment.
Why it matters
The suit adds to a string of celebrity-branded startups facing scrutiny over how much their famous founders actually deliver versus simply lend their name and image.