Venture investors have launched a high-profile fraud and breach-of-contract lawsuit in a Delaware federal court against American singer and actress Selena Gomez, her co-founders, and their mental health startup, Wondermind Global.

The legal action, brought by investment entities including Wondermind SRS 44 LLC and Bespoke Wondermind LLC, seeks to rescind approximately $1.2 million (£940,000) in Series A preferred stock investments. Established in 2021 by Ms Gomez alongside her mother, Mandy Teefey, and entrepreneur Daniella Pierson, Wondermind was promoted as an inclusive platform aimed at democratising mental fitness through tailored content, routine exercises, and dedicated digital resources.

At the heart of the complaint is the assertion that Ms Gomez—who commands a global audience of more than 500 million followers on social media—failed to uphold contractual obligations to market and build the brand actively as chief impact officer and head of marketing. The plaintiffs assert that Ms Gomez “purported to sign a contract obligating her to perform and then ignored it”, exploiting her public profile to secure funding while subsequently abandoning operational commitments.

The lawsuit further outlines serious allegations of executive misrepresentation and internal disarray. Investors claim they were falsely assured that institutional employer partnerships with financial giants such as JPMorgan and Fidelity were underway, and that a proprietary mobile application was being actively developed. None of these commercial initiatives materialised. Moreover, the complaint claims Wondermind struggled with basic corporate functions, repeatedly missing deadlines for vendor invoices and employee wage payments.

The plaintiffs state they were kept unaware of Wondermind’s precarious financial position until media exposés in late 2025 revealed widespread operational failure and internal strife among the founding leadership. Alongside demanding full restitution of their initial capital outlay, the investors are seeking reimbursement for legal fees.

Legal counsel for Ms Gomez has firmly rejected the claims, characterising the lawsuit as factually and legally meritless and confirming that a formal motion to dismiss the action will be submitted to the court.