Investors sue Selena Gomez, alleging fraud over $1.2M in Wondermind

What's the deal? Selena Gomez and her mother are being sued over their mental health startup, WondermindDealroom has a profile for this one. Try Dealroom →, by investors who say they put in nearly $1.2 million. The plaintiffs accuse Gomez of securities fraud and breach of contract, alleging the company failed to deliver on its commitments without telling them. ForbesDealroom has a profile for this one. Try Dealroom → first reported the news.

The backstory: Wondermind launched in 2021 to offer daily mental health resources to users. The lawsuit claims investors were unaware of the company's troubles until a September 2025 story from The CutDealroom has a profile for this one. Try Dealroom → uncovered them.

The allegations: The plaintiffs say Gomez and Wondermind misrepresented the company's finances and overstated the extent of Gomez's involvement. They also allege she failed to market the startup after promising to do so.

In their words: "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."

The complaint adds that 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."

What's next? The plaintiffs are seeking to recover their investments and legal fees. Wondermind did not respond to a request for comment.

The signal: The suit highlights the risks of celebrity-backed startups, where a founder's name and promised involvement can carry as much weight with investors as the underlying business.

Read more: TechCrunch

Image credit: Generated with Gemini