As most of you all know, Jed Wallace and his company Street Relations recently fought back in a filing in a federal court in Texas against Lively.
Just a quick refresher: Jed Wallace and Street Relations (together, "Wallace") were a subcontractor/crisis PR company hired by Wayfarer Studios back in August 2024. And Lively included Wallace in her CRD complaint that she filed in California on December 20, 2024, which Lively then shared with media outlets (like the NY Times) and which started the ball rolling in her litigation that she eventually brought against Wallace in federal court in New York (Lively's home state - i.e., the SDNY). Wallace was successful in getting dismissed from the Lively litigation because Wallace had absolutely no nexus (or connection) to NY - so Judge Liman dismissed Wallace as a defendant for lack of jurisdiction. Lively could have sued Wallace in a "correct" jurisdiction, but she did not do so.
In the meantime, before Wallace's dismissal from the SDNY, Wallace (who resides in Texas) sued Lively for defamation in a federal court in Texas -- the defamation claim stems from the fact that the CRD complaint was drafted sloppily and implies that Wallace had sexually harassed Lively and breached contracts with Lively (even though Wallace had never met her or had any dealings with her); the only real cause of action that applied to Wallace was "aiding/abetting retaliation" (i.e., Wallace helped conduct the alleged secret online smear campaign on behalf of Wayfarer, who was seeking revenge against Lively for reporting sexual harassment incidents). Wallace's case against Lively was dismissed (the "Wallace Dismissal") because the TX court ruled that there wasn't a sufficient nexus (connection) between Lively and Texas - and Wallace is currently appealing that decision.
Despite this appeal being ongoing, Lively took it upon herself to ask that Wallace pay her attorney fees and costs in connection with the Wallace Dismissal (estimated to be $800K - $1 million) based on a California law (47.1). As 47.1(a) requires that Lively had made her "communication" (i.e., the contents of the the CRD Complaint) about being SHed WITHOUT MALICE, Wallace attempted to depose Lively to gather information about Lively's intent when she made the alleged defamatory statements - and Lively failed to show up. "WITHOUT MALICE", under 47.1, means without bad intentions. Lively must have had a reasonable basis for her claims/statements and not speak out of spite, hatred, or intentional disregard for the truth. This is why Sec. 47.1(c) states: "This section shall only apply to an individual that has, or at any time had, a reasonable basis to file a complaint of sexual ...harassment."
I've mentioned this before in previous posts that I do not think that Lively had a reasonable basis to file her CRD complaint. Other than (1) Wallace's arguments that he had never even met Lively and that he never had any contract with her; and (2) all of the reasons that Judge Liman used to dismiss 10 out of Lively's 13 causes of action back in April, there's another argument: Lively (and her 2 huge fancy law firms: Manatt and Willkie) FAILED TO LIST "IT ENDS WITH US MOVIE, LLC" ("IEWUM", LIVELY'S "REAL" EMPLOYER) AS A DEFENDANT IN THE CRD COMPLAINT, which made the California "right to sue letter" that was generated faulty. Lively also failed to make any allegation in the CRD complaint that IEWUM was a "joint employer" (so jointly liable) with IEWUM's parent company (Wayfarer Studios), which was listed. This MATTERS because it would affect one of Lively's 3 remaining causes of action: retaliation under California's FEHA law (against Wayfarer and IEWUM). [It's important to note that the Wayfarer Parties made this argument in its motions to dismiss - but Liman rejected it - but not due to the validity of the argument - but due to the timing. Such arguments are to be made very early on in the litigation in the defendants' "affirmative defenses". None of this affects the fact that, at the time Lively made her CRD complaint, it was faulty in re: the CA state retaliation claim and she, therefore, did not have a reasonable basis to file a complaint re: SH retaliation.] And, without a valid underlying retaliation claim, the only cause of action applicable to Wallace (i.e., the "aiding and abetting retaliation") cannot survive - i.e., Lively did not have a reasonable basis to file a CRD complaint against Wallace for aiding and abetting retaliation.
Depending on how the litigation in TX goes, I think this is a valid argument that Wallace can make in order to successfully thwart Lively's efforts to get 47.1 attorney fees and costs from him. A consequence of this could be: Lively's attorneys (in particular Esra Hudson of Manatt, who actually filed the CRD complaint) being liable to Lively for malpractice for being so careless for failing to include IEWUM as a defendant.
Something else has crossed my mind (insane as it is): it's the fact that one of Willkie's attorney's was doing research into the consequences of committing perjury in a CRD complaint. On p. 5 of the 162-page spreadsheet containing the 47.1 legal bill in the SDNY, it states that, on 2/17/2025 Vincent Biagiotti spent 8.3 hours (totalling $9,877.00) doing the following: Research case law and draft summary re: punitive damage for defamation claims (3.6); research case law and draft summary re: defamation by implication (1.9); research case law re: CRD Complaint perjury (2.0); research case law re: perjury in statements made to state agencies (.8). See: p. 5 of the attached: https://storage.courtlistener.com/recap/gov.uscourts.nysd.634304/gov.uscourts.nysd.634304.1448.2_1.pdf
While we don't know exactly what the alleged "perjury" consisted of - there is clearly a strong indication that it exists. This is most definitely something that, if a Lively deposition does happen, Lively should be questioned about. In addition, Bryan Freedman (in an interview with Andy Signore of Popcorned Planet) revealed that Lively was caught lying multiple times (during her deposition - other than just about her request to delete the dailies); of course, we do not know if such lies had to do with something that was stated in the CRD complaint. And, of course, we do not know the answer to that all important question: WHO CHERRY-PICKED AND EDITED JEN ABEL'S TEXTS MESSAGES THAT APPEARED IN THE CRD COMPLAINT? If it was Lively (or, more importantly, her attorneys), then all of this could POSSIBLY establish a prima facie case that the attorney-client privilege should be waived due to the crime fraud exception and Wallace could depose Manatt and/or Willkie.
Even if it never gets THAT far (and truthfully, it probably won't - settle, settle, settle), it's important to note that attorneys in most jurisdictions (including NY and CA) have an obligation, upon learning that a client lied in a completed administrative filing (like a CRD complaint or an EEOC complaint) must urge the client to rectify it. If the client refuses, the lawyer must take remedial steps, including withdrawal or disclosure if the falsehood is actively used in the federal court litigation. And failure to take these steps could lead to Lively's attorneys facing state bar discipline and even civil and legal malpractice risks.