Singer and actress Selena Gomez is facing a lawsuit from investors who accuse her and her mother of misleading them over the financial condition and operations of their mental health startup, Wondermind.

The investors claim they put nearly $1.2 million into the company and are now seeking to recover their money, alongside legal fees, over allegations of securities fraud and breach of contract.

The lawsuit, first reported by Forbes, alleges that Wondermind failed to deliver on several commitments made to investors without informing them of the company’s difficulties.

Gomez is also accused of failing to fulfil an agreement to promote the business.

Wondermind was launched in 2021 by Gomez, her mother Mandy Teefey and entrepreneur Daniella Pierson, with the goal of providing users with daily mental health resources.

According to the lawsuit, investors were not made aware of the extent of the company’s financial problems until September 2025, when The Cut published a report detailing difficulties within the startup.

The plaintiffs allege that promises made to investors, including partnerships and other business initiatives, were not fulfilled.

They further claim that an app promised by the company was never developed and that the business continued to deteriorate without investors being informed.

The complaint alleges that Gomez agreed to obligations relating to the promotion of Wondermind but subsequently failed to carry them out.

“Gomez purported to sign a contract obligating her to perform and then ignored it,” the complaint states.

The investors are also accusing Gomez and Wondermind of misrepresenting the company’s financial position and overstating the singer’s level of involvement in the business.

They argue that the alleged misrepresentations influenced their decision to invest in the company.

The lawsuit is seeking damages to recover the investors’ contributions as well as legal costs.

Wondermind has not publicly responded to the allegations and did not respond to a request for comment at the time of reporting.

The case puts fresh scrutiny on the business venture, which was launched with the stated aim of making mental health support more accessible through digital resources and content.