Selena Gomez Faces Wondermind Lawsuit Over Alleged Securities Fraud

Selena Gomez and her mother are facing a lawsuit from investors in Wondermind, the mental health startup they helped launch, over allegations that include securities fraud and breach of contract.

The plaintiffs say they invested nearly $1.2 million in Wondermind and are seeking to recover their investments along with legal fees. The lawsuit alleges that investors were not properly informed as the company failed to deliver on commitments made during fundraising.

Investors challenge Wondermind’s promises

Wondermind launched in 2021 with plans to provide users with daily mental health resources. According to the complaint, investors were unaware of problems inside the company until a September 2025 report by The Cut detailed its difficulties.

The investors accuse Wondermind and Gomez of misrepresenting the company’s financial condition and overstating the extent of Gomez’s participation in the business. They also allege that Gomez had agreed to help market the company but failed to fulfil those commitments.

"Gomez purported to sign a contract obligating her to perform and then ignored it," the complaint states.

The complaint further alleges that promised partnerships and initiatives failed to materialise and that an expected app was never built. Investors claim the company’s founders, officers, and directors failed to disclose those problems while investor money continued to support the business.

Lawsuit seeks return of investor funds

The case centres on whether investors received an accurate picture of Wondermind’s operations, finances and Gomez’s role when they committed their money. The allegations remain claims made by the plaintiffs in the lawsuit and have not been established as findings of wrongdoing.

The investors are seeking repayment of their nearly $1.2 million investment as well as legal costs associated with the case.