The dispute began when Lively accused Wallace of assisting Baldoni’s team in orchestrating a smear campaign against her on social media. She claimed Wallace helped create fake content to attack her while defending Baldoni, allegedly influencing public opinion and generating negative media coverage.

Wallace, however, denies any involvement, stating that he has been falsely implicated in Lively’s sexual harassment and retaliation complaints. “Neither Wallace nor Street had anything to do with the alleged sexual harassment, retaliation, failure to investigate or aiding and abetting the alleged harassment or alleged retaliation. Neither could they have breached a contract with Lively because no such contract exists,” said Wallace’s attorney, Charles Babcock.

Lively’s legal team dismissed the lawsuit as retaliatory. “Another day, another state, another nine-figure lawsuit seeking to sue Ms. Lively ‘into oblivion’ for speaking out against sexual harassment and retaliation,” her lawyers stated. They added, “While this lawsuit will be dismissed, we are pleased that Mr. Wallace has finally emerged from the shadows, and that he too will be held accountable in federal court.”

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