Singer and actor Selena Gomez was sued in federal court by investors who allege the celebrity committed fraud by failing to fulfill contractual duties to build and promote her mental-health start-up, Wondermind Global, according to a lawsuit filed in Delaware. The plaintiffs, who invested nearly $1.2 million into the enterprise, claim that the enterprise collapsed due to unfulfilled promises and severe financial mismanagement, leaving employees and vendors unpaid.
Launched in 2021 with the stated goal of helping users strengthen their “mental fitness,” Wondermind Global aimed to capitalize on Gomez’s massive digital footprint. According to reporting by Yahoo Finance, investors were told that Gomez—who boasts more than 500 million social media followers—would be actively involved in the company as its head of marketing. Instead, the legal complaint asserts that the celebrity signed a binding contract obligating her to perform promotional and operational duties and subsequently ignored it.
Plaintiffs argue that leadership failed to deliver on core business milestones, most notably the creation of a promised mobile application designed to deliver mental health resources to users.
Allegations of Mismanagement and Abandonment
“There was no legitimate enterprise in the works, much less a lucrative one,” the plaintiffs stated in court documents reported by Yahoo Finance. The complaint further alleges that the firm failed to meet basic financial obligations, struggling with timely payments for its employees and contracted vendors.
The lawsuit notes that investors did not learn of the deep-seated troubles at Wondermind Global until an investigative online news story detailed the collapse in September 2025.
In response to the unfolding legal battle, representatives for Selena Gomez did not immediately respond to requests for comment regarding the fraud allegations or the status of the startup’s contracts. The plaintiffs are currently seeking to recoup their initial investments of nearly $1.2 million, alongside associated legal fees incurred through the federal litigation.
Next Steps in the Delaware Federal Court
The case sits in the United States District Court for the District of Delaware, where legal teams for the investor group are pursuing financial restitution.
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