Judge Orders Justin Baldoni to Cover Blake Livelys Legal Fees in Defamation Case
A U.S. District Judge has ruled that Wayfarer Studios, the production company founded by director Justin Baldoni, must reimburse actress Blake Lively for her attorneys’ fees in a defamation dispute that began with a $400 million lawsuit last year.
On June 12 2026, U.S. District Judge Lewis Liman delivered the decision in the San Francisco‑based case. The ruling follows the dismissal of Baldoni’s countersuit and the settlement reached in May 2026. Under the court’s order, Wayfarer Studios will pay the legal costs that Lively incurred while defending herself against Baldoni’s claims.
Lively first filed a defamation suit against Baldoni in late 2024, accusing him of creating a hostile work environment on the set of the film It Ends With Us. She alleged unwanted advances, inappropriate behavior, and retaliation after she reported the conduct. Baldoni counter‑filed, claiming Lively had fabricated the allegations to seize control of the film and extort him. A federal judge dismissed the countersuit in June 2025, ruling that many of Lively’s statements were protected by the First Amendment.
Judge Liman’s decision is grounded in the 2023 California law known as the Protecting Survivors from Weaponized Defamation Lawsuits Act. The law was designed to shield individuals who report sexual harassment from retaliatory defamation suits. According to the judge, Lively’s claims were made in good faith and were not malicious. The ruling grants her the right to recover legal fees, but it does not award triple damages or punitive damages, which are unavailable under federal law.
In a statement released by Lively’s attorneys, Esra Hudson and Michael Gottlieb, the lawyers said the ruling confirms Lively is the prevailing defendant under the California law and that the settlement preserves her right to pursue damages through other legal avenues. They also noted that the fee award is a “clear indication that the court recognized the legitimacy of Lively’s claims.”
Baldoni’s legal team, represented by Bryan Freedman, criticized the ruling. Freedman said the settlement was “fruitless” and that Lively received nothing in the agreement. He also attacked the California law, calling it an exploitation of the system. Lively’s attorneys responded that Freedman’s remarks were a DARVO tactic—denying, attacking, reversing victim and offender—and that the law protects survivors from the kind of retaliation they alleged.
The case is one of the first high‑profile tests of the Protecting Survivors from Weaponized Defamation Lawsuits Act. While the ruling does not resolve all of Lively’s claims, it establishes that a powerful figure cannot use a defamation suit to silence a harassment accuser. The decision may influence how future defamation cases involving sexual‑harassment allegations are handled, particularly in the entertainment industry.
Wayfarer Studios will now be required to pay Lively’s legal fees. The parties have not yet announced whether Lively will seek additional damages through other litigation. The court will review billing records and fee calculations submitted by Lively’s attorneys. The case remains open for further legal action, but the fee award marks a significant step in the ongoing dispute between the former co‑stars of It Ends With Us.
