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Blake Lively scored a legal win this week as judges pushed back on where a high-profile defamation fight can proceed. The rulings narrowed the battleground over accusations that a PR firm tied to Justin Baldoni helped wage an online smear campaign.
Jurisdictional setbacks for PR firm and its founder
Court actions in recent weeks focused less on the merits and more on venue. Judges in different states found procedural hurdles that stalled claims tied to the controversy.
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- Texas filing challenged: Jed Wallace, the owner of Street Relations Inc., initially filed a defamation action in Texas in February.
- Judge finds courtroom limits: A judge concluded the Texas court lacked authority over that particular case, leading to dismissal on jurisdictional grounds.
- New York questions too: Separately, a New York judge, Lewis Liman, ruled Lively’s team failed to show Wallace had enough contacts with New York for her claims to proceed there.
Allegations at the heart of the dispute
The litigation stems from Blake Lively’s December 2024 complaint. She accuses co-star and director Justin Baldoni of retaliatory behavior after she reported sexual harassment.
- Lively says Baldoni and associates launched a concerted online effort to damage her reputation.
- Her complaint names forums such as Reddit as platforms where the alleged smear took place.
- She claims the campaign was amplified by a so-called “digital army” hired to spread damaging posts.
Counterclaims and damage estimates from the PR side
Jed Wallace has denied wrongdoing and answered with his own lawsuit. He alleges Lively’s public accusations ruined his business prospects.
- Wallace’s defamation suit seeks to recoup what he calls millions in reputational harm.
- His legal filings assert projected losses to Street Relations exceed another million dollars.
- It remains unclear if Wallace will refile in a different jurisdiction after the dismissals.
Legal statements and reactions from attorneys
Public comments from the parties’ lawyers framed the rulings as vindication — at least procedurally.
- Baldoni’s counsel said the court made clear the claims against Wallace did not belong in that forum.
- They also reiterated that allegations linking their client to any smear campaign are unsupported.
- Representatives for Wallace did not immediately respond to requests for comment.
How this fits into the broader litigation between Lively and Baldoni
The PR-firm dispute intersects with larger, ongoing suits between Lively and Baldoni.
- Lively sued Baldoni for sexual harassment in December 2024.
- Baldoni countered with a $400 million defamation suit naming Lively, her husband Ryan Reynolds, and publicist Leslie Sloane.
- A judge tossed Baldoni’s defamation case in June, citing privileged statements in legal filings.
- The sexual-harassment case is slated to go to trial in March 2026.
What to watch next in the case
Procedural rulings have narrowed some avenues while leaving others open. Key points to follow:
- Whether Wallace will refile his defamation claim in another state.
- If Lively will pursue claims against Wallace in Texas, where he is based.
- The March 2026 trial date for Lively’s suit against Justin Baldoni.
Key names and legal players
- Blake Lively — actress and plaintiff in the sexual-harassment suit.
- Justin Baldoni — director and defendant, who has denied misconduct.
- Jed Wallace — founder of Street Relations Inc., accused of running online attacks.
- Judge Lewis Liman — New York judge who addressed jurisdictional ties to the state.
- Bryan Freedman — attorney for Baldoni, who issued statements after the rulings.
