Investors sue Selena Gomez alleging fraud tied to her mental health startup

Investors allege they put nearly $1.2 million into Selena Gomez’s mental health startup and are suing her for fraud. The plaintiffs claim Gomez failed to properly build and market the company after securing their investment.

The lawsuit highlights rising scrutiny of celebrity-backed startups, especially in sensitive categories like mental health. It may make investors more cautious about ventures driven by personal brands unless there is clear operational execution behind the public profile.