Blake Lively Sued by Crisis PR Firm in Justin Baldoni Legal Drama

1:15 PM PT — Chip Babcock, a partner in the Texas law firm Jackson Walker LLP that represents Jed Wallace, tells TMZ … “Blake Lively made false statements to the press through a private administrative filing, claiming Mr. Wallace and Street Relations had sexually harassed her, retaliated against her, aided and abetted others who did the same, breached a contract with her and engaged in other improper conduct. Mr. Wallace, who is a very private person, has never met or spoken to Ms. Lively. Ever. He has not engaged in a smear campaign against her at any point in time. The decision to file this lawsuit to rightfully protect himself and his family was made after Ms. Lively not only filed against him first in Texas but, indicated she intended to name him in yet another lawsuit.”

Blake Lively‘s legal headaches are getting worse … the actress is now being sued by a crisis PR firm for defamation in her ongoing lawsuit battle with Justin Baldoni, TMZ has learned.

Blake was slapped with a new lawsuit by Jed Wallace and his company, Street Relations Inc., after she named both parties along with Baldoni in her December 2024 California civil rights complaint for bad behavior related to the filming of “It Ends With Us.”

Wallace accuses Blake of falsely lumping his firm into the allegations she made against Baldoni, and then sending the information to various media outlets, including Elle Magazine. Despite the fact that Blake did not name Wallace or Street Relations in the lawsuit she filed just days later, and he says the damage was done and the media continued to report he had engaged in illegal activity.

Wallace says Blake then doubled down on her conduct — by asking a judge to authorize the taking of his deposition — but falsely accused him of being a subcontractor to a company called TAG to “assist them in their unlawful retaliatory social combat campaign” against Blake.

As a result of Blake’s defamatory statements, Wallace says he has suffered millions of dollars in reputational harm with a projected loss to his company that exceeds another million.

Blake’s legal team called BS on 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.”