Investors sue Selena Gomez alleging fraud tied to her mental health startup
Selena Gomez and her mother are facing a lawsuit from investors who claim their mental health startup, Wondermind, committed securities fraud. The plaintiffs allege that the company failed to deliver on promised initiatives and misrepresented the startup's financial health and Gomez's level of involvement.
Why it matters
This case highlights the risks associated with celebrity-backed startups and the potential for legal fallout when high-profile ventures fail to meet investor expectations.
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.
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