Blake Lively sued for ‘millions in reputational harm’ as Justin Baldoni lawsuit takes shocking turn

Blake Lively is facing yet another lawsuit as her high-profile legal dispute with actor Justin Baldoni continues to escalate. Crisis public relations specialist Jed Wallace, the owner of Street Relations Inc., has filed a defamation lawsuit against the Gossip Girl actress, claiming that her accusations have inflicted “millions in reputational harm” on his company.

PR Firm Sues Lively Over Defamation Claims

Wallace’s lawsuit stems from Lively’s legal filings in December 2024, when she sought approval to depose him in her ongoing case against Baldoni. The actress alleged that Wallace had connections to TAG, a crisis PR firm she accused of launching an “unlawful retaliatory social combat campaign” against her.

Although Lively did not name Wallace as a defendant in her lawsuit against Baldoni, Wallace contends that the damage was already done. According to court filings, Wallace asserts that Lively’s claims have caused “severe financial and reputational harm,” with losses exceeding millions of dollars. He also claims that his projected future earnings will suffer as a result of the allegations.

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Lively’s legal team quickly responded to the lawsuit, dismissing it as another attempt to intimidate her into silence. In a statement to TMZ, her representatives said, “Another day, another state, another nine-figure lawsuit seeking to sue Ms. Lively ‘into oblivion’ for speaking out against sexual harassment and retaliation.”

Baldoni and Lively’s Legal War Intensifies

The lawsuit against Lively is just the latest in a string of legal battles involving the actress and Baldoni. The feud between the two intensified following the release of It Ends With Us in August 2024. Lively accused Baldoni of sexual harassment and filed a lawsuit against him, triggering a cascade of countersuits.

Baldoni responded by suing The New York Times for $250 million, alleging defamation over its reporting on Lively’s claims. He has repeatedly denied any wrongdoing. In January 2025, he took his legal fight a step further by filing a staggering $400 million lawsuit against Lively, her husband Ryan Reynolds, and their representative, accusing them of civil extortion, defamation, and invasion of privacy.

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Despite the mounting lawsuits, Lively appears unfazed, according to sources close to her.

“She sees the whole lawsuit drama as a necessary bump, but she’s not letting it take away from her main focus, which is her children,” an insider told Page Six.

Meanwhile, Baldoni’s attorney has claimed that the legal battle has taken a serious toll on the actor, stating that it has “devastated [him] financially and emotionally.”

As both sides prepare for what promises to be a high-stakes courtroom showdown, the legal war between Lively and Baldoni shows no signs of slowing down.