Blake Lively is currently embroiled in a legal battle that has taken another turn as she faces a $7 million defamation lawsuit from a crisis manager she previously accused of ‘weaponizing a digital army’. The crisis manager, Jed Wallace of the Texas-based firm Street Relations, Inc., filed the lawsuit against Lively after she included him in a complaint she lodged with the California Civil Rights Department. The complaint alleged that Wallace was involved in a smear campaign orchestrated by Lively’s co-star Justin Baldoni’s PR team.
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In the civil rights complaint filed by Lively in December, it was claimed that Wallace had used a “digital army” to create and promote content across social media and internet chat forums aimed at tarnishing her image. However, Wallace’s legal team has refuted these claims by stating that Lively’s recent petition for a deposition from Wallace lacked any factual support for the allegations made against him and his company.
According to reports, Wallace and his firm are seeking a minimum of $7 million in damages and a court order to refute allegations of harassment and retaliation against Lively. The lawsuit argues that the statements made by Lively have caused reputational harm and financial losses to Wallace and his company exceeding $1,000,000. Lively’s legal team has yet to respond publicly to these latest developments in the case.
The legal dispute between Lively and Baldoni started in December 2024 when Lively filed a sexual harassment complaint against Baldoni, accusing him of misconduct on the set of their project and engaging in a smear campaign to damage her reputation. Baldoni, in turn, filed a $400 million lawsuit against Lively, her husband Ryan Reynolds, and their publicist Leslie Sloane, alleging extortion and defamation. The legal back-and-forth intensified with both parties appearing for a pre-trial conference recently.
As the lawsuit between Lively and Baldoni progresses, the trial is currently scheduled for March 2026. The judge overseeing the case has cautioned both parties against litigating in the public domain, emphasizing the need for a fair trial process. With the stakes high and tensions mounting, the legal teams on both sides are gearing up for what promises to be a protracted legal battle.
The complexity of this legal saga underscores the challenges faced by individuals in the spotlight when navigating disputes and allegations within the industry. As the case unfolds, it remains to be seen how the courts will adjudicate the conflicting claims and bring resolution to the contentious issues at hand. The involvement of high-profile personalities like Lively, Baldoni, and Reynolds has drawn significant attention to the case, with public interest continuing to grow as new developments emerge.
In the midst of legal proceedings and public scrutiny, Lively and Baldoni find themselves at the center of a legal storm that not only impacts their professional reputations but also raises broader questions about power dynamics and accountability in the entertainment industry. The outcome of this lawsuit could have far-reaching implications for how similar disputes are handled in the future, shaping industry practices and standards moving forward. As the legal battle unfolds, both parties will need to navigate a complex web of legal procedures and public scrutiny, with the ultimate goal of seeking justice and resolution.