Only hours after Jed Wallace initiated a defamation lawsuit worth $7 million against Blake Lively, his attorney acknowledged that this move was largely retaliatory, in anticipation of Wallace being drawn into the ongoing legal disputes involving the star of ‘It Ends With Us’, Justin Baldoni, his firm, sponsors, and public relations team.
This is not the first instance of such a retaliatory strategy being deployed amidst this continually escalating dispute that has been ongoing for nearly two months now.
On Tuesday, the legal team of Lively and Ryan Reynolds, at the Hays County courts, decided to withdraw their demand for a deposition from Wallace, the founder of Texas-based Street Relations, concerning his alleged involvement in an online smear campaign against Lively last year. This development was first reported by Deadline. Statements made by Lively’s attorney, Michael Gottlieb, during a New York hearing on February 3 regarding his client’s lawsuit against Baldoni, suggested that Wallace was likely to be included in the consolidated case.
Currently, Chip Babcock, another of Wallace’s attorneys, has shed light on all aspects of the case, both good and bad.
“Blake Lively made false statements through a private administrative filing, accusing Mr. Wallace and Street Relations of sexual harassment, retaliation, aiding and abetting others in the same, breach of contract and other inappropriate behaviours,” stated the Texas-based partner at Jackson Walker, LLP, in a statement on Wednesday. “Mr. Wallace, a very private individual, has never met or spoken to Ms. Lively. He has not been involved in any smear campaign against her. The decision to file this lawsuit to protect himself and his family was made after Ms. Lively not only filed a lawsuit against him in Texas but also indicated her intention to include him in another lawsuit.”
Named in Lively’s December 20 complaint to California’s Civil Rights Department regarding sexual harassment and retaliation, Wallace was not a part of Lively’s initial lawsuit against Baldoni, his Wayfarer Studios, Crisis PR head Nathan, and publicist Jennifer Abel, filed on December 31. Although Wallace is named in the preliminary lawsuit, it only pertains to the retaliation that Lively alleges she experienced. Wallace is not associated with the harassment Lively alleges she endured during the production of IEWU, nor any breach of contract.
According to Lively’s lawyers, Wallace, the executive at Street Relations, “mobilised a digital army across the country from New York to Los Angeles to create, disseminate, and promote content that seemed genuine on social media platforms and internet chat forums.”
With all of this, the entire conflict is due to begin trial on March 9, 2026.
No amended complaint from Lively/Reynolds has been submitted in the court docket yet, but it’s expected to be a matter of days, not if.
Wallace appears to have a close relationship with Nathan and Freedman, even though he may not have been directly hired by them in orchestrating the alleged astroturfing attack that Lively claims he was involved in. It does seem that the self-proclaimed “hired gun” online subcontractor may be the “Jed” referred to in several text messages about online attacks on Lively between Nathan, Abel, and their crew last year.
Regardless, in his complaint filed today, Wallace claims that Lively’s spotlight has cost him serious money because his name has been mentioned in a number of posts, broadcasts, and publications (like Elle) in connection — falsely, he says — with the legal battle between Lively and Baldoni. The media storm has caused “millions of dollars in reputational harm with a projected loss to his company that exceeds another million,” according to Wallace’s filing.
For Lively’s side, as expected in a tit-for-tat scenario, this is just more of the same in a situation that has seen Baldoni and his entourage insist that they are the victims of a smear campaign and career derailment at the hands of the powerful couple.
As the parties in this case disagree on almost everything, the estimated duration of next year’s trial varies greatly, with Lively’s team predicting two weeks and Baldoni’s side predicting a month and a half.
Frequently Asked Questions
What is the lawsuit about?
The lawsuit revolves around allegations of sexual harassment and retaliation. Blake Lively has accused Jed Wallace and Street Relations of these offences. Wallace has countered by filing a $7 million defamation lawsuit against Lively.
When is the trial set to begin?
The trial is set to begin on March 9, 2026.
What are the potential repercussions of the trial?
Depending on the outcome of the trial, there could be significant reputational and financial consequences for both parties.
Credit: deadline.com
