MOVIE NEWS – Hollywood just can’t seem to shake off the legal drama surrounding It Ends With Us. The latest twist? Blake Lively is now facing yet another lawsuit, this time from a crisis PR firm she named in her California civil rights complaint against Justin Baldoni.

According to The Hollywood Reporter, Jed Wallace and his company, Street Relations Inc., have filed a lawsuit against Lively, alleging that she falsely implicated them in her claims against Baldoni. In her civil complaint, Lively accused Baldoni of sexual harassment and orchestrating a smear campaign to ruin her reputation during the promotion of It Ends With Us. Although Wallace wasn’t named in the subsequent sexual harassment lawsuit, he argues that media outlets still ran stories suggesting he played a role in the controversy. As a result, Wallace is now seeking $7 million in damages.

Wallace’s legal team further claims that Lively escalated the situation by requesting a court-authorized deposition from him, falsely identifying him as a subcontractor of TAG—a company that Lively’s attorneys claim was involved in a retaliatory online campaign against her. Wallace alleges that these accusations have severely damaged his reputation, leading to financial losses for his business.

Blake Lively’s Legal Team Dismisses the Claims

Lively’s camp remains unfazed by the new lawsuit. Her attorneys responded with a sharp statement: “Another day, another multimillion-dollar lawsuit attempting to silence Ms. Lively for speaking out against harassment and retaliation.” The actress continues to focus on her allegations of sexual harassment and the subsequent efforts to discredit her. While some prefer to fight this battle in the court of public opinion, Lively has chosen to pursue legal action. Her team even welcomes Wallace’s lawsuit, arguing that it will expose his own accountability in the matter.

“This isn’t just a PR stunt—it’s a clear act of retaliation against the claims Ms. Lively filed with the California Civil Rights Department. While this lawsuit will ultimately be dismissed, we’re pleased that Mr. Wallace has finally stepped out of the shadows, as he, too, will now be held accountable in federal court.”

Shortly after Wallace made his lawsuit public, his attorney, Chip Babcock, issued a statement defending his client. He claimed that Lively dragged Wallace into the dispute without justification, tarnishing his name in the process.

“Blake Lively falsely told the media—through a confidential legal filing—that Mr. Wallace and Street Relations had harassed her, retaliated against her, and aided others in doing the same. She also accused them of breaching contracts and engaging in improper conduct. Mr. Wallace, a private individual, has never met or spoken to Ms. Lively. He has never participated in any campaign against her. This lawsuit was filed to defend his reputation and protect his family after Ms. Lively not only sued him in Texas but also signaled her intention to name him in yet another lawsuit.”

Source: MovieWeb