Why a PR Firm is SUING Blake Lively For $7 Million Amid Justin Baldoni Legal Drama

Transcript

00:00Blake Lively is facing a new lawsuit amid her and Justin Baldoni's ongoing It Ends With Us legal drama.

00:06Jed Wallace and his crisis mitigation firm, Street Relations Inc.,

00:10filed a defamation suit against the actress in Texas federal court on Tuesday.

00:14Lively named Wallace and his company as respondents in her initial California Civil Rights Department complaint in December.

00:21Her lawyers claimed in that complaint that Wallace was retained as a subcontractor by Baldoni's crisis PR firm, the agency group PR,

00:29and allegedly, quote,

00:40Lively's lawyers went on to allege that the, quote,

00:54But in Wallace's new lawsuit, which was obtained by Access Hollywood,

00:57his lawyers allege that Lively's CRD complaint, quote,

01:05His legal team wrote in the complaint,

01:16They allege that these statements, quote,

01:27According to The Hollywood Reporter, Wallace and Street Relations are seeking at least $7 million,

01:34as well as a declaratory judgment, stating he didn't engage in retaliation or harassment against Lively.

01:39The lawsuit comes weeks after Lively filed a petition to depose Wallace, per online court records,

01:45though she withdrew that petition on Tuesday, the same day as his lawsuit.

01:49Access Hollywood has reached out to Lively's legal team for comment regarding the new lawsuit.

01:53They shared in a statement to multiple outlets,

01:57seeking to sue Ms. Lively into oblivion for speaking out against sexual harassment and retaliation.

02:03This is not just a publicity stunt.

02:05It is transparent retaliation in response to allegations contained within a sexual harassment and retaliation complaint

02:10that Ms. Lively filed with the California Civil Rights Department.

02:13While this lawsuit will be dismissed, we are pleased that Mr. Wallace has finally emerged from the shadows

02:18and that he too will be held accountable in federal court.

02:21Meanwhile, one of Wallace's attorneys, Chip Babcock, shared in part in a statement to multiple outlets,

02:27who is a very private person, has never met or spoken to Ms. Lively, ever.

02:32He has not engaged in a smear campaign against her at any point in time.

02:35The decision to file this lawsuit to rightfully protect himself and his family

02:39was made after Ms. Lively not only filed against him first in Texas,

02:43but indicated that she intended to name him in yet another lawsuit.

02:47This lawsuit marks the latest turn in the ongoing legal battle surrounding Lively

02:51and her It Ends With Us co-star and director, Justin Baldoni.

02:54Blake is suing Baldoni for sexual harassment and retaliation.

02:57Claims he denies.

02:59Baldoni then sued Lively and her husband, Ryan Reynolds,

03:02for claims including civil extortion and defamation.

03:04Claims they also deny.