Blake Lively has scored a significant — if partial — courtroom win in her bruising legal battle with It Ends With Us director Justin Baldoni, with a US federal judge ruling that Baldoni must foot her legal fees after finding no evidence she acted with malice.
"Today's ruling makes it clear that Ms. Lively brought her claims in good faith, that there was no evidence she acted with malice, and that she is the prevailing defendant" under the California law she asserted, her lawyers Michael Gottlieb and Esra Hudson said in a statement.
However, the court stopped well short of a full victory for the actress, denying her bid for treble and punitive damages — leaving both sides claiming they came out on top.
What the Judge Actually Decided
US District Judge Lewis Liman issued the ruling on Friday, finding that Lively qualifies for attorneys' fees under a California statute designed to protect those who report alleged sexual misconduct from retaliatory defamation claims. The law, which came into effect in 2024, shields victims from legal retaliation provided they had a reasonable basis for their allegations.
On the question of damages, however, Judge Liman was clear. The statute, he wrote, "does not create an end run around the entire set of carefully crafted federal procedural rules designed to protect the rights of the parties" and "establishes a narrow exception to the usual litigation process for a specific and limited kind of relief." Compensatory and punitive damages, he ruled, do not fall within that exception.
The exact amount Baldoni will be required to pay has yet to be determined. Lively's legal team — a high-powered roster of litigators — will submit detailed billing records for the court's review, and given the calibre of lawyers involved, the final bill is expected to be substantial.
How the Feud Unfolded
The dispute exploded into public view in late 2024, when Lively accused Baldoni — who directed as well as starred in the Colleen Hoover adaptation — of sexual harassment during production, alleging he had spoken inappropriately about his sex life and attempted to add sex scenes not in the original script. She further claimed he orchestrated a PR campaign to damage her reputation.
Baldoni hit back hard. He and his production company Wayfarer filed a staggering $400 million defamation lawsuit against Lively, her husband Ryan Reynolds, and others, countering with claims of extortion and defamation. That lawsuit was subsequently dismissed by the court in June 2025.
The film itself, meanwhile, was a box office phenomenon — taking in more than $350 million worldwide in 2024, making it one of the year's biggest hits, even as the behind-the-scenes drama threatened to overshadow it entirely.
Both Sides Claim Victory
In a move that will surprise no one who has followed this case, both camps declared the ruling a win. Lively's team pointed to the court's finding of good faith as vindication, saying the decision creates "a path for survivors to hold accountable those who weaponize online attacks and retaliatory lawsuits to intimidate and silence survivors."
Baldoni's lawyer Bryan Freedman was equally bullish. "We fought and won against a coordinated effort built on allegations of sexual harassment, retaliation, and a smear campaign that never happened," he said. "Ms. Lively demanded over 300 million in fees and damages, had 10 of her 13 claims dismissed, she then chose to settle and received nothing. There was no sexual harassment. There was no retaliation. There was no smear campaign."
The pair had reached an 11th-hour settlement in May 2026, averting what would have been a very public trial — though no financial terms were disclosed at the time. Friday's ruling resolves the last major legal question to emerge from that settlement, though the court did leave open the possibility for Lively to pursue further damages against Baldoni or Wayfarer through a separate lawsuit or counterclaim. Whether she chooses to do so will be watched very closely indeed.
