Investors Sue Selena Gomez Over Mental Health Startup Fraud Claims
Original: Investors sue Selena Gomez alleging fraud tied to her mental health startup
Why This Matters
The lawsuit highlights accountability risks for celebrity-backed startups and investor protections in early-stage funding.
Investors have filed a lawsuit against singer Selena Gomez and her mother, alleging securities fraud and breach of contract tied to their mental health startup Wondermind. The plaintiffs claim they invested nearly $1.2 million and were misled about the company's finances and Gomez's involvement.
Selena Gomez and her mother are facing a lawsuit from investors in Wondermind, a mental health startup they co-founded in 2021 with the goal of providing daily mental health resources. The plaintiffs allege they invested nearly $1.2 million and are accusing Gomez of securities fraud and breach of contract. According to the complaint, Gomez signed a contract obligating her to market the startup but failed to follow through. The lawsuit further alleges that promised partnerships never materialized, initiatives were never launched, and the app was never built. Investors claim they were kept in the dark about the company's deteriorating condition for three years, only learning of its troubles after a September 2025 report by The Cut. The complaint states: '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.' Plaintiffs are seeking to recover their investments and legal fees. Wondermind did not respond to requests for comment. The case was first reported by Forbes.