Investors have sued Selena Gomez and her mother over Wondermind, the mental health startup Gomez co-founded, TechCrunch reports. The plaintiffs allege they invested nearly $1.2 million and are accusing Gomez of securities fraud and breach of contract. The claims remain allegations in a lawsuit. According to TechCrunch, the investors say Wondermind failed to deliver on commitments without informing them, and that Gomez did not market the company after allegedly promising to do so. TechCrunch says Forbes first reported the suit. Wondermind launched in 2021 with the goal of offering daily mental health resources to users, according to TechCrunch. The lawsuit alleges investors were not aware of the company’s problems until a September 2025 story from The Cut brought them to light. The complaint, as quoted by TechCrunch, alleges that Gomez signed a contract requiring her to perform obligations and then ignored it. It also alleges that promised partnerships and initiatives did not exist, that an app was not built, and that the company deteriorated for years without investors being told. The investors further allege that Gomez and Wondermind misrepresented the company’s finances and overstated Gomez’s involvement. They are seeking to recover their investments and legal fees, according to TechCrunch. Wondermind did not respond to TechCrunch’s request for comment. Who benefits: Plaintiffs benefit if the court accepts their claims and orders recovery of investments or legal fees. For now, no outcome has been reported. Who's exposed: Gomez, her mother, and Wondermind face legal and reputational exposure from the allegations. The exposure is tied specifically to the claims reported in the complaint, including securities fraud, breach of contract, and alleged misrepresentations.