Did Blake Lively just lose a key player in her lawsuit against Justin Baldoni?

Blake Lively’s civil rights lawsuit against It Ends With Us co-star Justin Baldoni has suffered a significant setback.

A federal judge has dismissed social media PR executive Jed Wallace and his company, Street Relations Inc., from the case, citing a lack of jurisdiction.

Judge Lewis Liman ruled on Wednesday that Lively failed to establish that Wallace, who operates out of Texas, could be sued in New York, where the lawsuit was filed. “The Wallace Defendants are located in Texas, and Lively has not alleged that they are responsible for any act that would subject them to jurisdiction in New York,” the court documents stated.

Lively had accused Wallace of working with Baldoni’s PR team to orchestrate a “digital smear campaign” against her. The actress claimed that Wallace “weaponized a digital army” to seed and promote negative content in retaliation after she filed a sexual harassment and retaliation complaint against Baldoni with the California Civil Rights Department in December 2024.

Wallace, who has denied all allegations, filed his own defamation lawsuit against Lively in February. His attorney, Chip Babcock, welcomed the dismissal, stating that Wallace appreciated the judge’s “thoughtful and thorough opinion.”

Lively still has the option to pursue her claims against Wallace in a different jurisdiction or amend her complaint. Meanwhile, she is expected to be deposed by Baldoni’s legal team later this week.

Her legal representatives maintain that Wallace’s lawsuit is “transparent retaliation” for her speaking out and said they look forward to holding him accountable in federal court.

This development is part of a larger legal battle unfolding between the two stars of the upcoming film It Ends With Us.