Selena Gomez and her mother are facing a lawsuit from investors in their mental Health startup Wondermind, with plaintiffs alleging securities fraud and breach of contract totaling nearly $1.2 million in lost investments. The legal action, first reported by Forbes, claims the founders failed to deliver on core commitments while keeping investors in the dark about the company’s deteriorating condition.
According to the complaint, investors were promised that Gomez would actively market the venture and that strategic partnerships and a dedicated app were in development. Instead, the lawsuit alleges that none of those initiatives materialized. “Gomez purported to sign a contract obligating her to perform and then ignored it,” the filing states. “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.”
Wondermind launched in 2021 with the stated goal of providing daily mental health resources to users. The plaintiffs contend that the company misrepresented its financial health and exaggerated Gomez’s operational involvement. They say they only became aware of the startup’s troubles after a September 2025 article in The Cut revealed the extent of the problems.
The investors are seeking to recover their capital plus legal fees. Representatives for Wondermind did not respond to requests for comment.
The case highlights the risks associated with celebrity-backed ventures where promotional commitments may not align with operational execution. As the litigation proceeds, it will likely draw further scrutiny to the governance and transparency practices of high-profile startup ventures in the wellness sector.
