Blake Lively is facing a new lawsuit in her legal dispute with It Ends With Us co-star Justin Baldoni. Crisis manager Jed Wallace, who was named in Lively’s previous complaint, has sued her for defamation, seeking at least $7 million in damages.
Wallace, who runs the Texas-based firm Street Relations, Inc., claims Lively falsely accused him of orchestrating a smear campaign against her. In her original complaint, she alleged that Wallace “weaponized a digital army” to spread negative content about her.
His lawsuit argues that Lively has no evidence to support these claims. It also states that her recent petition to investigate Wallace suggests she was unsure of his involvement. “Lively has no facts supporting the allegations she made,” Wallace’s attorneys wrote.
Lively’s legal team responded, calling the lawsuit “retaliation” for her speaking out about sexual harassment. They believe it is an attempt to “sue Ms. Lively into oblivion” and expect the case to be dismissed.
Wallace insists he has never met or spoken to Lively. His attorney, Chip Babcock, said the lawsuit was necessary to clear his name, especially since Lively allegedly planned to name him in another case.
This legal battle stems from Lively’s December 2024 lawsuit against Baldoni, where she accused him of sexual harassment and a retaliatory campaign to harm her reputation. Baldoni has denied these claims and filed a $400 million countersuit against Lively, her husband Ryan Reynolds, and their publicist.
Lawyers from both sides recently met in court for a pre-trial conference, where the judge warned against trying the case in public. The trial between Lively and Baldoni is set for March 2026.
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