Singer and actress Selena Gomez and her mother are facing a lawsuit over their mental health company, Wondermind, after investors accused the startup and its founders of financial misrepresentation, securities fraud and breach of contract.

According to the lawsuit, the plaintiffs invested nearly $1.2 million in Wondermind but claim the company failed to fulfill several commitments made to investors.

They also allege that Gomez promised to promote the business but did not carry out the marketing activities she had agreed to undertake. Forbes was the first to report the lawsuit.

Wondermind was launched in 2021 with the goal of providing users with accessible daily mental health resources. However, the investors allege that the company’s financial difficulties were concealed from them until a September 2025 report by The Cut brought the situation to light.

The lawsuit claims that several initiatives and partnerships presented to investors never came to fruition. It also alleges that a planned Wondermind app was never developed and that the company’s founders, officers and directors failed to adequately communicate its worsening financial position.

The investors further accuse Gomez and Wondermind of overstating Gomez’s involvement in the company and providing an inaccurate picture of its financial condition. They are seeking to recover their investments, along with legal fees and other damages.

Source: TechCrunch