Blake Lively and Justin Baldoni were embroiled in a multi-year legal battle involving allegations of sexual harassment, defamation, and countersuits related to the 2024 film "It Ends with Us," which grossed over $350 million worldwide [1, 2, 3].

The dispute began after Lively accused Baldoni of sexual harassment on set, including inappropriate discussions about his sex life and attempts to add unscripted intimate scenes [1, 2]. Baldoni and his production company, Wayfarer Studios, countersued Lively and her husband, Ryan Reynolds, alleging extortion and defamation [1, 2].

Judge Lewis Liman dismissed Baldoni's claims against Lively in June 2025 and struck down parts of Lively's complaints in April 2026 [2, 3]. The parties avoided a costly civil trial by reaching a confidential settlement in May 2026 [1, 2, 3].

On June 12, 2026, Judge Liman ruled that Baldoni must pay Lively's legal fees but denied any damages to her [1, 3]. The judge said, "Wayfarer Studios (Baldoni's production company) could not meet the burden of proof to overturn the privilege without more evidence. Lively is entitled to fees and costs" [3].

California law, which protects sexual harassment accusers from retaliatory defamation suits, was cited as relevant in Lively's recovery of legal fees [3]. Lively's legal team stated she is "comforted that her lawsuit demonstrates how laws like California’s provide a path for survivors to hold accountable those who weaponize online attacks and retaliatory lawsuits to silence survivors" [3].

Baldoni's lawyer Bryan Freedman called the case a failure for Lively, claiming she launched a "false campaign including sexual harassment and malicious defamation claims, originally seeking over $300 million but ended up settling without monetary gain and only limited attorney fees" [3].

The film "It Ends with Us" was released in 2024 and earned more than $350 million globally [1, 2, 3]. The legal dispute delayed public details until the recent rulings and settlement. Baldoni’s payment of Lively’s legal fees marks a partial legal victory for the actress.

The confidential settlement reached in May remains in effect, with no damages awarded but costs covered. No further court dates have been announced.