Investors sue Selena Gomez and her mental health start-up over alleged fraud of nearly USD 1.2 million

14 August,2026 09:08 AM IST |  Mumbai  |  mid-day online correspondent

The investors of Selena Gomez`s mental health start-up have sued the singer, the company and her mother, alleging fraud worth USD 1.2 million. They also accused Selena of neglecting her duties to build and promote the start-up

Selena Gomez. Pic via Instagram


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Singer, actor and entrepreneur Selena Gomez has landed in legal trouble after a lawsuit was filed against her and her mental health start-up Wondermind Global. The lawsuit against Selena, who has often spoken up about facing depression and mental health challenged, was filed by investors, who alleged fraud and neglect of her duties to build and promote a mental health start-up.

Selena Gomez sued

According to a report by Reuters, the lawsuit was filed by the investors in federal court in Delaware on Thursday. According to their claims, they invested nearly USD 1.2 million in Selena's mental health company, Wondermind Global, which was launched in 2021. According to the suit, the company aimed to help users with their "mental health."

In the complaint, investors have claimed that Selena Gomez, who is one of the biggest celebrities and mental health advocates with 500 million+ followers on social media, was brought on board to build the company as the head of marketing. The complainant further argued that Selena as well as the others in the leadership roles did not deliver on the expectations, which included the creation of a mobile application.

The lawsuit reportedly read, "Gomez purported to sign a contract obligating her to perform and then ignored it." The plaintiffs stated, "There was no legitimate enterprise in the works, much less a lucrative one," adding that the company failed to meet "even its most basic obligations, such as timely paying its employees and vendors."

The lawsuit also alleged that the plaintiffs were unaware of the company's financial troubles until they noticed a news report about the same back in September 2025. The article reportedly described the startup in a "state of utter disarray."

Currently, the plaintiffs are seeking to recover their investments, along with legal fees. Meanwhile, Selena Gomez is yet to respond to the allegations.

Investors also slam Selena Gomez's mother

The investors also reportedly claim that the article described Selena's mother, Mandy's, alleged substance abuse disorder and mismanagement of the company. It further accused Selena of an "abject dereliction of her duties" and of actively distancing herself from the company amid personal struggles with her mother.

In the same report, Mandy dismissed claims of substance abuse as well as the questionable state of the mental health company. She reportedly said, "It's unfortunate that a few disgruntled employees with an axe to grind can spread lies about me and distort the truth. Even more disappointing that the media is willing to amplify their lies."

The lawsuit also claims that they confronted Mandy about the claims in the article, but Mondy tried to blame Daniella Pierson, who was their former business partner in the company.

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