Blake Lively Wins Court-Ordered Legal-Fee Award in Dispute with Justin Baldoni

On June 13, 2026, U.S. District Judge Lewis J. Liman ordered former co‑star Justin Baldoni to pay actress Blake Lively’s legal fees stemming from a high‑profile lawsuit over the 2024 film It Ends With Us. The decision followed the dismissal of Baldoni’s $400 million defamation countersuit in June 2025 and is grounded in California’s Assembly Bill 933, which protects sexual‑harassment survivors from retaliatory lawsuits.

The judge confirmed that Lively may recover the costs she incurred while defending herself against Baldoni’s claims, but denied requests for punitive damages, treble damages, or other relief. Liman cited the 2023 law, which requires plaintiffs in defamation cases tied to sexual‑harassment allegations to prove malice or ill‑will, as the basis for the fee award.

Lively’s attorneys, Michael Gottlieb and Esra Hudson, said the ruling “makes it clear that Ms. Lively brought her claims in good faith… and that she is the prevailing defendant.” They also described the settlement reached on May 4, 2026 as a “resounding victory” that held the parties accountable for attempts to silence and intimidate her.

Baldoni’s legal team, led by Bryan Freedman, called the outcome a “win and total victory” for their clients. Freedman noted that the court had dismissed 10 of Lively’s 13 claims, including all sexual‑harassment, defamation, and individual‑defendant allegations. The countersuit, filed by Baldoni and Wayfarer Studios, also named Lively’s husband Ryan Reynolds as a defendant for extortion and defamation.

The legal battle began when Lively filed a lawsuit in December 2024, alleging that Baldoni behaved inappropriately during production of It Ends With Us. She claimed he discussed his sex life in a way that made her uncomfortable, attempted to add unscripted sexual scenes, and launched a public‑relations campaign to damage her reputation. Baldoni and Wayfarer Studios responded with a countersuit accusing Lively and Reynolds of extortion and defamation.

Judge Liman dismissed Baldoni’s countersuit in June 2025 and struck down portions of Lively’s complaints in April 2026. The parties settled the dispute on May 4, 2026, avoiding a trial; the settlement terms remain confidential. Both sides agreed not to appeal the judge’s June 13 decision.

The court’s ruling allows Lively to seek reimbursement for her legal expenses under the 2023 California law that shields accusers from retaliatory defamation suits. According to the judge’s order, the law’s provisions apply to the fees and costs Lively incurred while defending herself.

It Ends With Us grossed more than $350 million worldwide in 2024, making it one of the year’s biggest releases. The film’s commercial success has heightened scrutiny of the legal disputes surrounding its production.

At present, the exact amount Baldoni must pay for Lively’s legal fees has not been disclosed. The parties have agreed not to appeal the judge’s decision, and no further litigation is expected unless new claims arise. The case underscores the growing influence of state‑level defamation protections on federal litigation involving sexual‑harassment allegations and highlights the legal risks for Hollywood professionals engaged in high‑profile projects.