Blake Lively's Lawsuit Faces Setback as Key Defendant Dismissed
New York, NY – July 17, 2025 – Actress Blake Lively's ongoing civil lawsuit, connected to alleged sexual harassment and a subsequent "digital smear campaign" linked to the film "It Ends With Us," has hit a procedural snag.
U.S. District Judge Lewis Liman ruled that Lively's legal team failed to demonstrate that Wallace or his company had sufficient contacts with New York to be sued in the state. The court found that the alleged "digital smear campaign," which Lively claims Wallace helped orchestrate in retaliation for her sexual harassment allegations, primarily occurred outside of New York. While Lively asserted Wallace worked closely with her co-star Justin Baldoni's PR team to target her, the judge emphasized a lack of evidence that Wallace knowingly directed relevant actions into New York.
The dismissal is "without prejudice," offering Lively the option to file an amended complaint with more robust jurisdictional arguments or pursue her claims against Wallace in a different jurisdiction, such as Texas where he is based.
Despite this setback, the lawsuit continues against other defendants, including Justin Baldoni and his publicists Melissa Nathan and Jen Abel. Lively is reportedly preparing for her deposition, scheduled for later this week, a key step in the ongoing legal proceedings.
The case has drawn significant attention since Lively filed her civil rights complaint in December, alleging sexual harassment and a hostile work environment during the production of "It Ends With Us," followed by a retaliatory smear campaign.
The trial for the remaining aspects of the case is currently set for March 2026 in New York.
