Investors sue Selena Gomez alleging fraud tied to her mental health startup
Investors have sued Selena Gomez and her mother over Wondermind, their mental health startup, alleging securities fraud and breach of contract. The claim centres on accusations that the company failed to meet promised commitments, misrepresented its financial position and overstated Gomez’s involvement, raising questions about accountability to early backers.
The plaintiffs say they invested almost $1.2 million in Wondermind, which launched in 2021 to provide daily mental health resources. They allege they only learned of the firm’s difficulties after a September 2025 report by The Cut, and claim promised partnerships, initiatives and an app did not materialise; they are seeking their investment and legal costs. Wondermind did not respond to TechCrunch’s request for comment.
- Investors allege Wondermind misled them about finances and Gomez’s involvement.
- The plaintiffs say they invested nearly $1.2 million.
- They seek repayment and legal costs.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The investors’ case is that people who put substantial sums into a startup are entitled to clear, accurate representations about its leadership, plans and commercial effort. If Gomez’s involvement was presented as a material reason to invest but she did not make a reasonable effort to build or promote the company, they may argue that this undermined the bargain on which their investment was made. Their position rests on investor protection, accountability and candour in celebrity-backed ventures.
The case against
Gomez’s strongest case is that an investment in an early-stage mental-health business is inherently risky, and disappointment or a company’s failure to develop as hoped does not by itself establish fraud. She may contend that her obligations and role were defined by the relevant agreements, that business decisions and changing market conditions can affect a startup’s trajectory, and that investors should distinguish ambitious projections from enforceable promises. Her position rests on the need to avoid converting ordinary entrepreneurial risk into personal liability without evidence of deliberate deception.
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