NEW YORK – A federal judge has ruled that actor Blake Lively can recover certain legal fees from actor-director Justin Baldoni and his production company following their legal battle connected to the 2024 film It Ends With Us. However, the court denied Lively’s requests for punitive damages and other additional financial remedies.
In a written decision issued Friday, Judge Lewis J. Liman said Lively is entitled to recover legal fees and costs associated with defending herself against a countersuit filed by Baldoni after she brought legal action against him in December 2024.
The ruling relied on a California law intended to protect individuals alleging sexual harassment or discrimination from retaliatory lawsuits. Liman noted that under the statute, a plaintiff may be required to cover a defendant’s legal expenses when a defamation claim filed in response to such allegations is dismissed, even before extensive evidence-gathering takes place.
The judge also addressed a potential exception under the law, which could apply if Baldoni and his company, Wayfarer Studios LLC, demonstrated that Lively acted with malice. Liman wrote that no evidence had been presented to support such a finding.
Court Rejects Additional Damage Requests
While allowing recovery of certain legal costs, the judge declined Lively’s efforts to pursue punitive damages or triple damages under the California statute.
Liman wrote that those requests were inconsistent with federal procedural rules governing the litigation.
The decision follows a broader settlement reached last month between Lively and Baldoni, which resolved most of the remaining claims shortly before trial proceedings were scheduled to begin. The agreement did not include any monetary payment to Lively, though it preserved her ability to seek reimbursement for legal expenses.
Both Sides Claim Victory
Attorneys representing both parties characterized the latest ruling as favorable to their respective clients.
Lively’s lawyers, Michael Gottlieb and Esra Hudson, said the court’s decision demonstrated that their client pursued her claims in good faith and that no evidence showed malicious intent.
Baldoni’s attorney, Bryan Freedman, highlighted that the court rejected Lively’s efforts to obtain what he described as hundreds of millions of dollars in fees and damages. He argued that her recovery was limited to attorney fees tied to a single legal claim and a relatively short period of litigation.
Freedman also reiterated his clients’ position that allegations of sexual harassment, retaliation, and a coordinated smear campaign were unfounded.
Background of the Legal Battle
The dispute began in late 2024 when Lively accused Baldoni and his production company of sexual harassment and retaliation. She alleged that efforts were made to damage her public reputation and credibility.
Baldoni denied the allegations and maintained that the complaints were part of an attempt to gain greater creative control over It Ends With Us. He subsequently filed a countersuit accusing Lively and her husband, actor Ryan Reynolds, of defamation and extortion.
Judge Liman later dismissed Baldoni’s countersuit. Weeks ago, he also dismissed Lively’s sexual harassment claims, ruling that she could not pursue them because she worked on the film as an independent contractor rather than as an employee.
Industry Spotlight Remains on ‘It Ends With Us’
The legal conflict drew significant attention because it involved the adaptation of Colleen Hoover’s bestselling 2016 novel It Ends With Us. Released in August 2024, the film exceeded box office expectations and became one of the year’s most closely watched literary adaptations.
Although the latest ruling does not fully conclude every issue connected to the case, it further narrows a dispute that has attracted substantial attention across the entertainment industry and among audiences following the film’s success.
Tags: Blake Lively, Justin Baldoni, It Ends With Us, Colleen Hoover, Wayfarer Studios LLC, Ryan Reynolds, Judge Lewis J. Liman, The Town, The Shallows, Gossip Girl, Jane the Virgin, Five Feet Apart, Deadpool, It Ends With Us (film)
