Blake Lively Faces $7M Lawsuit from Crisis Manager She Claimed ‘Weaponized a Digital Army’

Blake Lively is facing another lawsuit in her ongoing It Ends With Us legal battle with costar Justin Baldoni, this time from a publicist she named in the complaint she filed with the California Civil Rights Department.

On Tuesday, Feb. 4, Jed Wallace of the Texas-based crisis-management firm Street Relations, Inc., sued Lively, 37, alleging defamation. This came after Lively filed a petition on Jan. 21 requesting a deposition from Wallace, which was then rescinded Tuesday, according to Wallace’s lawsuit.

In Lively’s December civil rights complaint, her lawyers alleged that Wallace was hired by Baldoni’s PR team to assist in the alleged smear campaign, claiming he “weaponized a digital army around the country from New York to Los Angeles to create, seed and promote content that appeared to be authentic on social media platforms and internet chat forums.”

Wallace’s lawyers claim in his new lawsuit that her recent petition “conceded that Lively has no facts supporting the allegations she made against Wallace and Street in the Precursor which ‘made headlines around the world’ as she now, apparently under the threat of sanctions from one of Plaintiffs’ attorneys, sought to ‘investigate the scope of Mr. Wallace’s conduct.’ “

In response to the lawsuit, Lively’s legal team said in a statement, “Another day, another state, another nine-figure lawsuit seeking to sue Ms. Lively ‘into oblivion’ for speaking out against sexual harassment and retaliation.”

“This is not just a publicity stunt — it is transparent retaliation in response to allegations contained within a sexual harassment and retaliation complaint that Ms. Lively filed with the California Civil Rights Department,” her lawyers add. “While this lawsuit will be dismissed, we are pleased that Mr. Wallace has finally emerged from the shadows, and that he too will be held accountable in federal court.”

According to The Hollywood Reporter, Wallace and the company are seeking a minimum of $7 million in damages plus “a court order stating that he didn’t engage in harassment or retaliation against the actress.”

“The statements of fact, actual or implied, of and concerning Plaintiffs in the Precursor and CRD Complaint are false, defamatory, made with either negligence or ‘actual malice’ and have caused millions of dollars in reputational harm including both general and special damages through emotional harm (Wallace), actual damages and real and projected loss of business (Wallace and Street) in an amount that exceeds $1,000,000,” Wallace’s Tuesday filing reads.

One of Wallace’s attorneys, Chip Babcock, a partner in the Texas law firm Jackson Walker, LLP, says in a statement, “Mr. Wallace, who is a very private person, has never met or spoken to Ms. Lively. Ever. He has not engaged in a smear campaign against her at any point in time. The decision to file this lawsuit to rightfully protect himself and his family was made after Ms. Lively not only filed against him first in Texas but, indicated she intended to name him in yet another lawsuit.”

The ongoing legal battle between Lively and Baldoni, 41, began in December 2024, when the actress filed a sexual-harassment complaint against Baldoni, alleging that he engaged in misconduct during the film’s production and a retaliatory smear campaign meant to “destroy” her reputation, which he has denied.

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Baldoni countered Lively’s initial claim on Jan. 16 with a $400 million lawsuit against her, her husband Ryan Reynolds and their publicist Leslie Sloane, alleging extortion, defamation and more.

Lawyers from both sides came face to face in court for the first time on Monday, Feb. 3, for a pre-trial conference, where the judge warned them to refrain from litigating the case in the public forum. Baldoni and Lively’s trial is currently scheduled for March 2026.