Selena Gomez is facing a lawsuit from investors who allege that the pop star and co-founders of her mental-health startup Wondermind misrepresented the company's prospects and failed to deliver on promises made while raising millions of dollars, according to a Bloomberg News report.
Five investors filed the complaint Thursday in federal court in Delaware, accusing Wondermind Global Inc. and its founders of fraud and concealing the company's worsening financial and operational problems.
Gomez, who helped launch the company in 2021, served as its chief impact officer and head of marketing.
Her mother, Mandy Teefey, was a co-founder and co-chief executive, while Daniella Pierson, founder of the newsletter Newsette, was the third co-founder.
The allegations have not been proven in court.
Investors say Wondermind never delivered
Wondermind was presented as a company focused on “mental fitness,” aiming to build products that would help people develop routines for maintaining their mental wellbeing.
Bloomberg News further reported that the lawsuit mentions that the pop star's company claimed a valuation of $95 million when it sought investment in 2022.
Investors say they were told Wondermind was developing several products, including a mobile application, and had opportunities to generate significant revenue.
Those promises ultimately failed to materialise, the complaint alleges. “The initiatives never materialized,” attorneys for the investors wrote.
They claim the promised app was never developed and that the company's founders, officers and directors did not disclose the extent of its problems while the business deteriorated.
“The app was never built. And for three years, while the company quietly collapsed around them, not one of its founders, officers, or directors said a word to the investors," the complaint further read.
The investors are seeking to recover the money they put into the company.
Gomez's celebrity following at center of dispute
A major part of the investors' case revolves around Gomez's enormous social-media following.
The lawsuit alleges that investors believed Wondermind's value depended heavily on Gomez's ability to promote the company to an established global audience.
According to the complaint, the singer-actor's social-media reach exceeded 500 million people.
Investors claim they expected Gomez to use that audience to help market Wondermind and build its brand.
However, the complaint alleges that former Disney star failed to meet contractual obligations and that her involvement with the company diminished as Wondermind's problems grew.
Investors also allege that Gomez's strained relationship with her mother contributed to her failure to fulfill her responsibilities. The complaint describes “long-running personal struggles” between Gomez and Teefey as one factor behind the singer's alleged disengagement.
Gomez, Teefey and Pierson were all named as defendants.
Wondermind raised $5 million from investors
Wondermind attracted significant attention when it raised $5 million during an early-stage financing round in 2022.
The investors included Serena Williams's venture fund, Lightspeed Venture Partners and Sequoia Capital. Five individuals who are now plaintiffs in the lawsuit collectively invested $1.2 million, according to the complaint.
Among them was former Allergan CEO Brent Saunders.
The investors say they committed their money based on representations about Wondermind's business prospects, partnerships and potential sources of revenue.
The lawsuit alleges that Wondermind claimed to have secured institutional employer relationships with companies including JPMorgan Chase and Fidelity. It also allegedly represented that it was pursuing advertising arrangements, celebrity-focused content and the development of its app.
Financial problems allegedly stayed hidden
According to the investors, they did not learn the full extent of Wondermind's financial difficulties until a September 2025 report by The Cut brought the company's troubles into the spotlight.
The complaint cites the article as revealing Gomez's alleged withdrawal from the business and what the investors describe as a serious failure by her to perform her responsibilities.
The plaintiffs argue that the defendants concealed important information about Wondermind's finances, management and operations.
They also say their position as minority investors left them with limited rights to obtain information about the company's condition.
By the time they learned more about Wondermind's problems, the startup had collapsed, according to the lawsuit.
A celebrity-backed startup that failed to take off
Wondermind launched at a time when interest in mental health and wellness businesses was surging. Its pitch was to make mental fitness more accessible by encouraging people to approach emotional wellbeing in a way similar to physical fitness.
Gomez's involvement gave the venture instant visibility. Her public advocacy around mental health also appeared closely aligned with the company's mission.
But the investors now argue that the celebrity factor was central to the company's value and that they were misled about the extent of Gomez's involvement.
The complaint says the investors believed Wondermind's appeal rested largely on Gomez's participation and her ability to reach a massive existing audience.
That alleged disconnect between the company's pitch and its eventual performance is now at the heart of the legal dispute.
Gomez and co-founders have not commented
Gomez, Teefey and Pierson did not immediately respond to requests for comment seeking their response to the allegations. An email sent to Wondermind also did not receive an immediate response.
The lawsuit remains an allegation, and the defendants have not been found liable for fraud.
For now, the case puts renewed scrutiny on Wondermind's failed business model and raises broader questions about how celebrity-backed startups represent the value of a founder's personal brand when seeking money from investors.
The investors are asking the court to help them recover their investments, turning what began as a high-profile mental-health venture into a legal battle over celebrity influence, startup promises and alleged financial disclosures.
