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Selena Gomez faces a fraud lawsuit after five investors accused her startup, Wondermind, of misleading them. The investors filed the case on August 13 in Delaware federal court.
They invested nearly $1.2 million in 2022 after hearing strong plans for the mental health startup. The investors claim Wondermind later failed to deliver promised projects and kept problems hidden.
Gomez launched Wondermind in 2021 with her mother Mandy Teefey and Daniella Pierson. The company aimed to help people improve their mental fitness through online content. Investors say Gomez's huge social media following formed part of the business pitch. They also claim Gomez agreed to help market and grow the company.
The lawsuit says Wondermind promised a mobile app, business partnerships and advertising deals. Investors claim the company never delivered several of these plans. The complaint also says Wondermind struggled with basic business needs, including timely payments.
The lawsuit includes a direct claim about Gomez's role in the company. It says, “Gomez purported to sign a contract obligating her to perform and then ignored it.”
Investors also claim Wondermind had serious problems before they learned about them. They say a September 2025 news report first revealed the company's growing troubles. The lawsuit claims investors remained unaware while the startup faced financial pressure.
The case names Gomez, Teefey, Pierson and Wondermind Global as defendants. Investors want their money back, along with damages and legal fees. A representative for Gomez did not immediately respond to Reuters' request for comment.
Pierson denied claims that the singer used investor money for personal expenses. The fraud claims remain allegations, and the court has not found the defendants liable.
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