Legal Dispute Between Blake Lively and Justin Baldoni Enters New Phase
The ongoing legal battle between actress Blake Lively and director Justin Baldoni appears to be far from over, as the former has reportedly decided to pursue legal fees from her ex-co-star following a recent settlement. The dispute, which initially involved allegations of sexual harassment during the production of It Ends With Us, has now shifted focus to financial matters.
Settlement and Remaining Issues
Lively and Baldoni reached a resolution on Monday, two weeks before their trial was set to begin. The court case had been centered around Lively’s claim that Baldoni conspired with publicists to damage her reputation after she accused him of sexual harassment on set. However, a new issue has emerged: the question of legal fees.
Lively’s lead attorney, Michael Gottlieb, stated in a letter filed in a Manhattan court that the parties have resolved all claims except for one. According to the notice of settlement, Lively is seeking legal fees from Baldoni and his associates related to a separate legal matter. This has sparked controversy, with Baldoni’s legal team arguing that such fees could be “draconian.”
Background of the Legal Battle
The legal conflict between Lively and Baldoni began in December 2024 when the actress accused him of sexually harassing her while they were co-starring in It Ends With Us, which he also directed. She further alleged that Baldoni and his production company, Wayfarer Studios, orchestrated a smear campaign against her in retaliation.
Baldoni has consistently denied these allegations. In response, he launched a multimillion-dollar defamation lawsuit against Lively and her husband, Ryan Reynolds, but this was later dismissed by a judge. He also filed a lawsuit against The New York Times, which was also dismissed.
Lively withdrew her emotional distress claims in June last year, and the remaining issues were scheduled to go to court in March 2026. However, the trial was delayed.

Recent Developments and Statements
In April, a judge dismissed 10 of Lively’s 13 claims, including the sexual harassment allegations, before the parties settled the matter on May 4. They released a joint statement emphasizing their commitment to raising awareness about domestic violence and supporting survivors. The statement read, “Raising awareness, and making a meaningful impact in the lives of domestic violence survivors – and all survivors – is a goal that we stand behind. It is our sincere hope that this brings closure and allows all involved to move forward constructively and in peace, including a respectful environment online.”
Now, it is believed that Lively is seeking legal fees and damages from Baldoni over his countersuit. Whether this issue can be resolved remains uncertain, as both sides continue to claim victory.
Perspectives from Both Sides
Lively’s attorneys described the settlement as “a resounding victory” for their client. In a statement provided to E! News, they emphasized that Lively’s mission was to expose and hold accountable those who use smear campaigns and retaliatory lawsuits to silence survivors. They added that by waiving their right to appeal, Baldoni and the other defendants now face personal liability for abusing the legal system.
However, Baldoni’s attorney, Bryan Freedman, offered a different perspective. He stated that the settlement was a “win and total victory” for the Wayfarer parties. He pointed out that the court had already dismissed 10 of Lively’s 13 claims, including every sexual harassment and defamation claim. According to Freedman, Lively voluntarily dismissed the remaining claims, and the settlement occurred because she knew she would lose in court.
Final Thoughts
As the legal battle continues, both parties remain steadfast in their positions. While the settlement marks a significant step, the unresolved issue of legal fees highlights the complexity of their dispute. The outcome of this final matter will likely determine whether the case truly comes to a close or if more legal action is ahead.






