Overview

• Liman found that Wallace’s alleged smear activities largely took place outside New York and that there are no allegations he knew of contacts within the state.
• The dismissal is without prejudice; Lively has until July 31 to amend her complaint or refile claims against Wallace in a different jurisdiction.
• Lively’s central lawsuit accusing Justin Baldoni and his publicity team of sexual harassment and retaliation will continue under Judge Liman in federal court.
• Wallace has responded by filing a separate defamation suit against Lively in Texas following his removal from the New York case.
• Earlier rulings upheld the privilege of Lively’s harassment complaint, constrained defamation counterclaims and set the trial for March 2026.