Crisis PR Firm Sues Blake Lively for Defamation Over ‘Digital Army’ Allegations in ‘It Ends With Us’ Complaint

Blake Lively poses for photographs during a photocall for her new movie 'It Ends With Us' in London, Britain, 08 August 2024. The movie will be released in Britain on 09 August.
Photo: ANDY RAIN/EPA-EFE / Shutterstock

Jed Wallace, the owner of a crisis mitigation firm, has filed a defamation lawsuit against Blake Lively in federal court in Texas. Wallace is seeking millions of dollars in damages, claiming his reputation was harmed after being accused of playing a role in a “digital army” against the actress. The accusation came in response to Lively’s civil rights complaint, in which she alleged sexual harassment on the set of the film It Ends With Us and claimed the smear campaign was a retaliatory effort orchestrated by actor Justin Baldoni’s team.

Wallace, the head of Street Relations, strongly denies the claims and argues that he had no involvement in any retaliatory efforts aimed at Lively. His lawsuit asserts that the accusations have caused significant damage to his reputation, resulting in financial losses. Wallace’s legal team seeks a declaratory judgment clearing his name and at least $6 million in punitive damages.

The defamation suit is the latest in a series of legal actions tied to the public dispute between Lively and Baldoni’s camp, marking the fifth lawsuit in connection to the scandal. Wallace’s suit comes just days after similar defamation claims were filed by publicists Jen Abel and Melissa Nathan, who also allege reputational harm following their names being linked to the smear campaign.

Celebrities along with cast and crew attend the "It Ends With Us" New York Premiere at AMC Lincoln Square Theater on August 6, 2024 in New York City.
Celebrities along with cast and crew attend the “It Ends With Us” New York Premiere at AMC Lincoln Square Theater on August 6, 2024 in New York City. Photo: Jackie Brown / SplashNews.com

In their legal filings, Abel and Nathan claim their lives were turned upside down and that they became targets of intense public scorn after being accused of assisting Baldoni in an online campaign against Lively. These claims have further fueled the ongoing controversy surrounding the allegations of sexual harassment and retaliation.

Lively’s legal team wasted no time responding to Wallace’s lawsuit, dismissing it as part of the ongoing retaliation against her for speaking out about the alleged harassment. In a statement, Lively’s attorneys referred to Wallace’s lawsuit as a transparent attempt to intimidate her. “This is not just a publicity stunt—it is transparent retaliation in response to allegations contained within a sexual harassment and retaliation complaint that Ms. Lively filed with the California Civil Rights Department,” the statement read.

Lively’s team has also suggested that Wallace’s legal move only strengthens their case. “We are pleased that Mr. Wallace has finally emerged from the shadows, and that he too will be held accountable in federal court,” they said.

The central issue in the defamation case stems from an August text message obtained by Lively’s attorneys. In the message, Nathan, a publicist for Baldoni, reported to Abel that they were “crushing it on Reddit,” with the information attributed to Wallace. Lively’s attorneys argue that Wallace was hired by Nathan to influence online forums and to mount a coordinated effort on Reddit that attacked Lively while defending Baldoni. They also claimed that Wallace had referred to himself as a “hired gun” and had touted a “proprietary formula for defining artists and trends.”

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Blake Lively attends the gala premiere of the movie 'It Ends With Us' at Imperial in Copenhagen, Denmark, 09 August 2024.
Blake Lively attends the gala premiere of the movie ‘It Ends With Us’ at Imperial in Copenhagen, Denmark, 09 August 2024. PHOTO: EPA-EFE / Shutterstock

Wallace was named as a respondent in Lively’s civil rights complaint, but was not named as a defendant in the lawsuit itself. However, the case has taken a new turn with the filing of Wallace’s defamation suit, which aims to absolve him of any liability in the matter.

In response to these developments, Lively’s team previously filed a motion in January 2025 requesting permission to depose Wallace in Hays County, Texas. However, that motion was dropped earlier this week, which may signal that both sides are preparing for further legal battles ahead.

Wallace’s attorneys have argued that Lively should not be protected by litigation privilege due to the widespread dissemination of her civil rights complaint. They contend that the document was provided to numerous media outlets, resulting in worldwide headlines that harmed their client’s reputation.

As the legal saga continues to unfold, both sides are bracing for an extended court battle. Wallace’s defamation suit is just one part of the ongoing legal drama involving Lively, Baldoni, and their respective teams. The outcome of this case could have significant implications for the reputations of those involved, as well as for the broader issue of public figures using legal action to combat accusations of misconduct.

At this stage, it remains unclear how the court will rule, but it is clear that the legal conflict between Lively and Baldoni’s associates is far from over. With millions of dollars at stake and reputations on the line, the case is likely to attract significant media attention in the coming months.

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