A court decision this week removed a major figure from the sprawling dispute, giving the actress new leverage as she heads toward a high-profile trial next spring.

With accusations, countersuits, and Hollywood tension swirling, her latest win arrives at a pivotal moment.

A new chapter opened for Lively this week when a defamation lawsuit filed against her in Texas was officially tossed out.

The suit had been brought by Street Relations Inc. and its owner, Jed Wallace, who claimed Lively defamed him while building her separate case against Justin Baldoni.

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Wallace had been named in Lively’s December complaint alleging a coordinated smear effort tied to the production of “It Ends with Us.”

The dismissal, however, didn’t stem from the claims themselves but from jurisdiction issues.

As a source connected to Baldoni explained to the Daily Mail, “The two separate cases were each dismissed due to jurisdiction. The difference is that Blake largely blamed Jed for the alleged smear campaign, but regardless of the reason behind the dismissal, Jed is no longer a part of the larger suit brought forth by Blake.”

With Wallace now removed from the legal battlefield, questions immediately shifted to what this means for the broader case.

Representatives for Lively did not immediately comment, but the implications of the ruling mean one obstacle in the complex web of accusations has been cleared.

Shortly after the dismissal in Texas, Blake Lively’s team celebrated a more sweeping victory.

A representative told TMZ that the ruling effectively stripped away all reactive lawsuits filed against the actress by Justin Baldoni, his studio, and associated digital teams.

The rep stated, “With this decision, all of the retaliatory lawsuits filed against Blake Lively by Justin Baldoni, Wayfarer Studios and their crisis communications and digital teams have been dismissed.”

They added that “Ms. Lively will have her day in court on her claims at the March trial in New York.”

The timing of this development was meaningful. Just a week earlier, a judge had rejected Lively’s attempt to sue Wallace in New York due to improper venue.

The judge noted that Wallace resides in Austin, Texas, making it unclear whether New York had authority over him.

Lively’s spokesperson clarified the nuance of the ruling, telling PEOPLE, “The Court’s decision today was only about where Jed Wallace can be sued,” adding that, “the Court ruled that Ms. Lively’s claims against him can and should be brought in a different court.”

The spokesperson further affirmed that this procedural hiccup has “no impact on [Lively’s] case against Baldoni, Heath, Sarowitz, Nathan, Abel, Wayfarer and The Agency Group, who she will see in court in New York at the March trial.”

The legal turmoil is rooted in serious allegations Lively made against Baldoni, whom she starred opposite in “It Ends with Us, the 2023 blockbuster adaptation of Colleen Hoover’s novel.

The movie generated $148 million domestically and $350 million globally, but the off-screen controversy soon overshadowed the film’s success.

In December, Lively filed a lawsuit accusing Baldoni of sexually harassing her during the film’s production.

She alleged body-shaming, inappropriate behavior, and a subsequent smear campaign orchestrated to harm her professionally and personally.

The engrossing on-screen relationship between Lily Bloom (played by Lively) and Ryle Kincaid (played by Baldoni) was already fraught with themes of emotional toxicity.

Yet the actress insisted the real-life experience was far worse. Her lawsuit did not just target Baldoni; she also named several of his collaborators, including Wayfarer Studios leadership and PR professionals Nathan and Abel.

Baldoni has denied all allegations.

As the legal disputes expanded, Justin Baldoni launched a massive countersuit of his own, seeking $250 million in damages from The New York Times.

He later folded that claim into a broader $400 million lawsuit filed in January that named Blake Lively, her husband Ryan Reynolds, and her longtime publicist Leslie Sloane.

The lawsuit cited a Times report detailing the allegations against him.

That suit was dismissed in June. Yet the back-and-forth legal actions have drawn intense public fascination, especially considering the contrast between the film’s commercial success and the turmoil it has unleashed behind the curtain.

“It Ends with Us,” featuring co-stars Jenny Slate, Hasan Minhaj, Brandon Sklenar, and Kevin McKidd, was originally hailed for its sensitive exploration of trauma and the cycle of abuse.

According to the movie’s logline, Lily Bloom “overcomes a traumatic childhood to embark on a new life,” only to find herself drawn into a relationship that “begins to see sides of him that remind her of her parents’ relationship.”

For some observers, the legal conflict has taken on a meta dimension, with real-life events reflecting the film’s themes of power imbalance, damaging behavior, and control.

Lively’s latest legal win narrows the field heading into what promises to be a major trial next spring in New York.

The removal of retaliatory cases not only strengthens her strategic position but also sharpens the focus on her original allegations against Justin Baldoni and his collaborators.

The actress has kept her public reactions measured, but through her representatives, she continues to signal readiness for the next phase.

With the Wallace matter sidelined, at least for now, her team is free to pursue legal avenues in the appropriate jurisdiction, as the spokesperson emphasized she is “evaluating her many options for doing so.”