Blake Lively and Justin Baldoni Settle Legal Dispute Over ‘It Ends With Us’

Blake Lively can recover some legal costs from Justin Baldoni, fellow actor and director, but not the punitive damages she sought after settling their legal dispute regarding the 2024 film “It Ends With Us.” The ruling came from Judge Lewis J. Liman on Friday.

Judge Liman’s decision allows Lively to recover legal fees and costs linked to her defense against a countersuit Baldoni filed after she sued him in December 2024. He pointed to a California law that shields survivors of sexual harassment and discrimination from retaliatory lawsuits. This law mandates the plaintiff to pay the defendant’s legal fees if a defamation claim is dismissed without factual evidence gathered.

The judge noted that an exception would require Baldoni and his production company, Wayfarer Studios LLC, to prove Lively’s claims were filed out of malice. They failed to present such evidence. However, Liman rejected Lively’s claims for triple damages and punitive damages, citing federal procedural rules designed to protect both parties.

The core of their legal battle was settled last month before a trial for Lively’s retaliation claims began. Although Lively did not receive money from the settlement, she was allowed to pursue legal fees. Both sides saw Liman’s ruling as a victory.

Michael Gottlieb and Esra Hudson, representing Lively, emphasized that the legal fees award affirmed her good faith in filing claims without malice, making her the prevailing defendant. Baldoni’s lawyer, Bryan Freedman, highlighted that Lively’s demand for $300 million in fees and damages was largely denied, with most claims dismissed before settlement. Frequencies said her use of a California law was an unsuccessful attempt to gain damages.

Freedman criticized the case, asserting that Baldoni and others faced unfounded threats. He stated that no instances of sexual harassment or retaliation were found, supported by court records.

Lively accused Baldoni and his production company of sexual harassment and retaliation in late 2024. She alleged that Baldoni sought to damage her reputation and credibility. In contrast, Baldoni denied the allegations, claiming Lively fabricated issues to seize creative control of the film. His countersuit accused Lively and her husband, Ryan Reynolds, of defamation and extortion, but Judge Liman dismissed it, along with Lively’s sexual harassment claims. The judge cited her status as an independent contractor as a barrier to bringing those claims.

Released in August 2024, “It Ends With Us” is based on Colleen Hoover’s bestselling novel about a relationship that turns violent. It performed well at the box office.

Blake Lively is known for roles in “The Sisterhood of the Traveling Pants” and the TV show “Gossip Girl.” Justin Baldoni starred in “Jane the Virgin” and directed “Five Feet Apart.” He also authored “Man Enough,” which questions traditional masculinity.