Actress Blake Lively has been sued for $7 million in defamation by Jed Wallace, a crisis communications specialist and head of Texas-based firm Street Relations, Inc. The lawsuit follows Lively’s previous claims that Wallace had orchestrated a smear campaign against her when she was involved in a dispute with “It Ends With Us” co-star and director Justin Baldoni.
In December 2024, Lively filed a complaint accusing Baldoni of sexual harassment and stated that Wallace “weaponized a digital army” to post derogatory content about her on social media platforms. Wallace has filed a defamation suit in a Texas federal court seeking to clear his name and get damages for reputational harm that he says he suffered from the accusations.
Wallace’s legal team contends that Lively’s claims are unfounded and have caused significant harm to his professional standing. They argue that neither Wallace nor his firm had any involvement in the alleged harassment or retaliation against Lively. Charles Babcock, Wallace’s attorney, stated, “As Lively later admitted she knew of no facts to support the allegations.”
In response, Lively’s lawyers have called Wallace’s lawsuit a retaliatory move. They say the defamation claim is an attempt to intimidate Lively after she filed a sexual harassment and retaliation complaint with the California Civil Rights Department. Her lawyers stated, “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.”
This legal battle adds another layer to the ongoing dispute between Lively and Baldoni. After the allegations against her, Baldoni denied all the wrongdoings, then turned around and filed a $400 million lawsuit against Lively and her husband, Ryan Reynolds, for defamation and extortion. Tensions are, of course, escalating; both sides will continue going to court to clear their names.
As the situation unfolds, both parties are set to appear before a trial slated for March 2026. The legal processes will delve further into the complicated nature of the case, as well as who plays what roles and whether claims are valid or not.
The results of this media trial are therefore still uncertain but hold great consequences for all involved. Analysts believe that this case will give the public an insight into how celebrities interact with their crisis management agencies.
