Blake Lively Hit With Another Lawsuit As Justin Baldoni Legal Battle Heats Up

Blake Lively is facing yet another lawsuit in the midst of her ongoing legal battle with Justin Baldoni, this time from crisis PR firm Street Relations Inc. and its president, Jed Wallace.

Lively and Baldoni first sparked rumors of a falling out when "It Ends With Us" premiered in August 2024. On the same day that Lively officially sued Baldoni, the actor retaliated with his own $250 million libel lawsuit against The New York Times over its coverage of her allegations. The publication has stood by its reporting, calling it “meticulous.”

Baldoni has denied any wrongdoing, and in January 2025, he escalated the feud further by suing Blake Lively, her husband, Ryan Reynolds, and their representative for $400 million, citing claims of civil extortion, defamation, and invasion of privacy.

According to new court documents obtained by Page Six, Lively is being sued by a PR firm.

Per the outlet, Street Relations Inc.'s president, Jed Wallace, alleges that Lively defamed him and his company when she filed a complaint against Baldoni with the California Civil Rights Department in December 2024. Lively’s complaint not only accused her "It Ends With Us" co-star of sexual harassment but also claimed he engaged in a social media “smear campaign” against her.

Though Lively named Wallace and Street Relations Inc. in her initial filing, she did not list them as defendants in the lawsuit she later filed in New York federal court. However, Wallace claims that Lively later sought to depose him, alleging he acted as a subcontractor for TAG, the company she accused of conducting an “unlawful retaliatory social combat campaign” against her.

Wallace insists this claim is false and asserts that the accusations have cost him “millions of dollars in reputational harm,” with an additional projected loss to his company exceeding another million.

Lively’s legal team swiftly responded to the lawsuit, telling TMZ, “Another day, another state, another nine-figure lawsuit seeking to sue Ms. Lively ‘into oblivion’ for speaking out against sexual harassment and retaliation.”

Blake Lively and Ryan Reynolds are reportedly experiencing “severe anguish” as the legal war between Lively and Justin Baldoni escalates.

According to TMZ, a source close to the couple revealed that Lively is “emotionally drained” due to the ongoing litigation, which has taken a significant emotional toll on both her and Reynolds. The "Gossip Girl" alum remains determined to see the case through, viewing it as a “sideshow” orchestrated by Baldoni and his legal team, but the prolonged legal proceedings have been exhausting for her and her family.

The conflict between the former "It Ends With Us" co-stars erupted after Lively accused Baldoni of sexual harassment during the film’s production. Baldoni has vehemently denied the allegations and countersued, claiming that Lively and Reynolds attempted to take control of the project.

As part of his defense, Baldoni recently launched a website aimed at presenting “his side” of the story.

The site features text messages, videos, and a detailed timeline of events, along with an amended complaint against Lively. His attorney, Bryan Freedman, told Daily Mail that the lawsuit was updated due to “an overwhelming amount of new proof” that has surfaced.

“This fresh evidence confirms what we have long suspected—that Ms. Lively and her team conspired for months to orchestrate a takedown through false accusations and illicitly obtained communications,” Freedman alleged.

He further claimed that the case has brought unwanted attention to The New York Times, alleging that Lively and her representatives were deeply involved in the publication’s coverage of Baldoni, Wayfarer Studios, and their associates, which he called a deliberate smear campaign.

On Monday, the legal teams for Blake Lively and Justin Baldoni appeared in court for the first time since Lively sued Baldoni for sexual harassment, prompting a countersuit from the actor against her and The New York Times.

Despite previous reports, a new source close to Lively revealed to TMZ that the legal battle has taken a significant emotional toll on both the actress and her husband, Ryan Reynolds. The distress allegedly began during the filming of It Ends with Us and has only intensified with the ongoing litigation.

Now, Lively is eager to see the case resolved in court, firmly believing that the facts will speak for themselves. According to insiders, she remains optimistic about how the hearing unfolded, particularly after the judge issued a warning to Baldoni’s attorney, Bryan Freedman, cautioning him against making inflammatory public comments that could influence the jury pool.