Blake Lively’s Lawsuit Against Justin Baldoni’s Social Media Expert Jed Wallace Dismissed by Judge

Lively’s legal team says the court’s decision “relates solely to the procedural question of whether he is subject to jurisdiction in New York or elsewhere”

Blake Lively and Justin Baldoni.Credit : Mike Marsland/WireImage;John Nacion/Variety via Gett

NEED TO KNOW

Blake Lively’s lawsuit against Texas-based publicist and social media specialist Jed Wallace has been dismissed on jurisdictional grounds
Lively alleged Wallace was hired by Baldoni’s PR team to assist in an alleged smear campaign against the actress
“We currently are evaluating our numerous options for holding Mr. Wallace accountable,” Lively’s team said in a statement

Blake Lively’s lawsuit against Texas-based publicist and social media specialist Jed Wallace has been dismissed on jurisdictional grounds.

Lively, 37, had filed a civil rights complaint against Wallace, who runs Texas-based crisis-management firm Street Relations, Inc., in December, alleging that Wallace was hired by Justin Baldoni’s PR team — publicists Melissa Nathan and Jen Abel — to assist in an alleged smear campaign against the actress. Lively claimed Wallace “weaponized a digital army around the country from New York to Los Angeles to create, seed and promote content that appeared to be authentic on social media platforms and internet chat forums.”

On July 16, Judge Lewis Liman ruled that Lively had failed to prove in her case that New York is the appropriate venue for Wallace to be sued. The judge granted Wallace’s motion to dismiss without prejudice, which gives Lively until July 31 to file an amended complaint or sue Wallace in a different jurisdiction, according to court documents obtained by PEOPLE.

Lively has alleged that Wallace, along with Baldoni, 41, and publicists Nathan and Abel, orchestrated a character assassination effort leading up to the release of Lively and Baldoni’s film It Ends With Us.

Justin Baldoni and Blake Lively in ‘It Ends With Us.’.Nicole Rivelli/Sony Pictures

“The Wallace Defendant’s motion to dismiss must be granted because the Court lacks personal jurisdiction over them,” Judge Liman wrote in his ruling. “The alleged negative publicity campaign against Lively largely took place outside of New York. The few alleged actions targeting New York were taken by others, and there are no allegations suggesting the Wallace Defendants were aware of them. Therefore, the Wallace Defendants cannot be forced to defend this lawsuit in New York.”

“Lively alleges that as part of their efforts to ‘bury’ Lively, Nathan, Abel, Wallace, and Street Relations ‘targeted New York by, among other things, communicating with (or causing content to be provided to) journalists, content creators and media entities based in New York, including at least one journalist at the New York Post and another at the New York Times,’ … to shape coverage and contribute to stories that were eventually published in those outlets,” Liman continued. “These allegations might support personal jurisdiction against Abel and Nathan … even if those two did not engage in their conduct from within New York. … However, Lively has not alleged facts that would show that the Wallace Defendants were aware of those jurisdictional contacts.”

Wallace’s attorney Chip Babcock, a partner in the Texas law firm Jackson Walker, LLP, said in a statement, “Mr. Wallace and Street Relations are very grateful for the Court’s carefully and thorough opinion. They hope that Ms. Lively does not choose to refile against them.”

In response to the dismissal, Lively’s rep said in a statement, “Ms. Lively respects the Court’s decision, which has nothing to do with the merits of her allegations about Mr. Wallace’s role in the smear campaign and relates solely to the procedural question of whether he is subject to jurisdiction in New York or elsewhere.”

“We currently are evaluating our numerous options for holding Mr. Wallace accountable for the pivotal role he served in the retaliatory effort that Justin Baldoni and the Wayfarer Parties paid him at least tens of thousands of dollars a month to perform,” the statement added.

The dismissal comes one day before Lively’s deposition, which will take place in an undisclosed location following a recent protective order that was granted to the Another Simple Favor actress.

Blake Lively attends the ‘It Ends With Us’ UK Gala Screening on August 08, 2024 in London, England.Jeff Spicer/Getty

Never miss a story — sign up for PEOPLE’s free daily newsletter to stay up-to-date on the best of what PEOPLE has to offer​​, from celebrity news to compelling human interest stories.

Lively accused her It Ends With Us director-costar Baldoni of sexual harassment and retaliation, which he has denied. His counterclaims against Lively and her husband Ryan Reynolds, which involve allegations of extortion and defamation, were dismissed by Judge Liman, and his legal team opted not to refile amended versions of those claims.

Their trial is set for March 2026 in New York, and attorneys for both Lively and Baldoni have indicated that they plan to testify during the proceedings.