In a significant legal victory for actress Blake Lively, a federal judge has dismissed the staggering $400 million defamation lawsuit filed against her by her “It Ends With Us” co-star and director, Justin Baldoni. The ruling, handed down by U.S. District Court Judge Lewis Liman on Monday, marks a critical turning point in the bitter and highly publicized legal battle that has embroiled the two Hollywood figures for months.
Baldoni, along with his production company Wayfarer Studios, had launched the colossal countersuit in January, accusing Lively, her husband Ryan Reynolds, their publicist Leslie Sloane, and even The New York Times of orchestrating a malicious defamation and extortion campaign. This came in response to Lively’s own December 2024 lawsuit against Baldoni, alleging sexual harassment and retaliation on the set of their hit film adaptation of Colleen Hoover’s bestselling novel.
However, Judge Liman’s decision effectively dismantled the core tenets of Baldoni’s claims. In his opinion, the judge ruled that Lively’s allegations, made within the context of her initial sexual harassment lawsuit, are protected by legal privilege and therefore exempt from libel claims. This means that statements made as part of a formal legal proceeding cannot typically form the basis for a defamation suit.
Furthermore, Liman dismissed Baldoni’s claims of extortion, finding that the allegations against Lively – including that she threatened to refuse to promote the film to gain creative control – did not constitute extortion under California law. The judge noted that Wayfarer Studios “does not allege facts showing that Lively had an obligation to promote the film or to approve marketing materials.”
The dismissal extends beyond Lively and Reynolds, with the judge also tossing out Baldoni’s separate $250 million defamation lawsuit against The New York Times. The Times had reported on Lively’s sexual harassment allegations, and the judge found that Baldoni failed to demonstrate the publication acted with “actual malice,” a high legal bar required for defamation claims against media outlets.
Lively’s legal team hailed the ruling as a complete vindication. “Today’s opinion is a total victory and a complete vindication for Blake Lively, along with those that Justin Baldoni and the Wayfarer Parties dragged into their retaliatory lawsuit, including Ryan Reynolds, Leslie Sloane and The New York Times,” stated Lively’s attorneys, Esra Hudson and Mike Gottlieb. They further characterized Baldoni’s $400 million lawsuit as a “sham” and indicated they would now pursue attorneys’ fees, treble damages, and punitive damages against Baldoni and his associated parties.
Blake Lively herself took to Instagram Stories, expressing “love and gratitude” to her supporters. “Like so many others, I’ve felt the pain of a retaliatory lawsuit, including the manufactured shame that tries to break us,” she wrote. “While the suit against me was defeated, so many don’t have the resources to fight back.” She emphasized her resolve to “continue to stand for every woman’s right to have a voice in protecting themselves, including their safety, their integrity, their dignity and their story.”
While the vast majority of Baldoni’s countersuit was dismissed, Judge Liman did grant his legal team a narrow window until June 23 to amend and refile certain allegations related to whether Lively breached a contract or tortiously interfered with one. However, the dismissal of the headline-grabbing defamation claims represents a significant setback for Baldoni.
The legal battle stems from the production and promotion of “It Ends With Us,” a film that garnered significant box office success but was overshadowed by swirling rumors of on-set discord and the subsequent lawsuits. Lively’s original complaint accused Baldoni of creating a “hostile workplace” through inappropriate comments and behavior, leading to her experiencing “severe emotional distress.” Baldoni has consistently denied these allegations.
This latest ruling marks a crucial chapter in a complex Hollywood legal saga, with Lively and her legal team now poised to pursue their original sexual harassment and retaliation claims against Baldoni, free from the shadow of the massive countersuit.