Investors sue Selena Gomez alleging fraud tied to her mental health startup

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Singer and actress Selena Gomez and her mother are being sued over their mental health startup, Wondermind. The plaintiffs in the lawsuit say they invested nearly $1.2 million in the startup, and are accusing Gomez of securities fraud and breach of contract.

They allege that the startup failed to deliver on its commitments without informing investors, and Gomez failed to market the startup after promising to do so. The news was first reported by Forbes.

Wondermind launched in 2021 and aimed to offer daily mental health resources to users. The lawsuit alleges that 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. The plaintiffs are seeking to recover their investments and legal fees.