PR firm files new defamation lawsuit against Blake Lively amid her legal battle with Justin Baldoni

Blake Lively is facing another defamation lawsuit as part of her escalating legal battle with co-star and director Justin Baldoni. The latest legal issue, filed in federal court on Tuesday, comes from crisis public relations firm Street Relations and its owner, Jed Wallace, who accuse Lively of defamation in a complaint she filed in December 2024.

This lawsuit adds fuel to the ongoing feud between Lively and Baldoni, with both sides accusing each other of various legal violations. In the newly filed lawsuit, Wallace and Street Relations claim that Lively falsely accused them of participating in a smear campaign against her, which she outlined in her California civil rights complaint.

Wallace denies being involved in any such campaign and alleges that the defamation has caused "millions of dollars in reputational harm" to both himself and his company. He further claims that Lively's accusation led to widespread media coverage, falsely reporting him as a defendant in her legal battles with Baldoni.

While Wallace was not named in Lively's original lawsuit against Baldoni and his PR team, he argues that the public reporting of his alleged involvement has severely damaged his reputation and business. Wallace also accuses Lively of sowing confusion by publicly linking him to the alleged smear campaign, further harming his professional standing.

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Blake Lively's legal team denies defamation claims

Blake Lively's legal team has strongly refuted Wallace's claims, labeling the lawsuit as a retaliatory measure against her for speaking out about s*xual harassment and retaliation. In a statement to Forbes, Lively's attorneys remarked,

"Another day, another state, another nine-figure lawsuit seeking to sue Ms. Lively 'into oblivion' for speaking out against s*xual harassment and retaliation."

"This is not just a publicity stunt—it is transparent retaliation in response to allegations contained within a s*xual harassment and retaliation complaint that Ms. Lively filed with the California Civil Rights Department."

Blake Lively's legal team further emphasized that they believe the lawsuit will be dismissed, describing it as part of a larger pattern of attempts to silence her. They also welcomed the opportunity for Jed Wallace to finally "emerge from the shadows" and face legal scrutiny in federal court.

Blake Lively's December 2024 civil rights complaint accused Wallace and his firm, Street Relations, of participating in a retaliatory smear campaign arranged by Baldoni's PR team.

According to the complaint, Wallace allegedly "weaponized a digital army" to plant false information about Lively on social media platforms like Reddit. Lively's lawsuit includes a text from Melissa Nathan, a PR manager hired by Baldoni, in which she allegedly references Wallace's role in manipulating online forums to spread negative information about her.

The text in question, which Blake Lively's legal team considers evidence of Wallace's involvement, includes the phrase, "We are crushing it on Reddit," along with the name "Jed." This is interpreted as an indication that Wallace was working with others to sway public opinion against Lively.

Wallace, however, strongly denies these claims, stating that he was not a defendant in Lively's initial lawsuit and was not involved in any malicious activities.

The lawsuit filed by Wallace is just the latest development in a lengthy legal feud between Blake Lively and Justin Baldoni. The two have been involved in a series of legal actions since December 2024, following months of speculation about their strained relationship during the filming and promotion of It Ends With Us.

Blake Lively has accused Justin Baldoni of s*xual harassment and retaliating against her by arranging a smear campaign, while Baldoni has also filed a lawsuit against Lively, accusing her of defamation and extortion.

According to Forbes, A judge set the trial date for March 9, 2026, last week, but a few days later, he warned that the date could be moved up if the case continues to be "litigated in the press," given the frequent media comments from both parties' legal teams.