Selena Gomez sued for alleged fraud over mental health company

Selena Gomez faces a lawsuit from five investors who backed Wondermind Global, a mental health company she co-founded with her mother. The plaintiffs allege that Gomez failed to fulfill promises to actively build the brand, leaving the company in a state of financial ruin. They claim Gomez's "abject dereliction of her duties" has resulted in a $1.2m (£890,000) investment loss, plus additional costs and damages.

The lawsuit, filed by investors from New York and Florida, alleges that Wondermind's founders falsely represented the company's progress, promising ad deals, celebrity cover stories, an app, and an active role for Gomez as head of marketing. The plaintiffs claim Gomez misrepresented signing a contract by ignoring it. While Wondermind's website lists her as a co-founder, she is now listed as chief marketing officer by her mother and business partner Daniella Pierson, who recently resigned.

According to the lawsuit, the company failed to meet basic obligations, such as timely payment to employees and vendors. Notably, the investors were unaware of the company's financial struggles until a September 2025 investigative article by The Cut revealed issues with Wondermind's management and lack of a plan for the future.