Blake Lively’s lawsuit against Justin Baldoni has allegedly affected her already damaged reputation.
In December 2024, the actress accused Justin Baldoni, her former It Ends With Us co-star and director, of harassment on set. She also claimed he orchestrated a smear campaign against her after she voiced complaints about his alleged inappropriate behavior during filming.
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The 42-year-old filmmaker denied all accusations and filed a countersuit, seeking $400 million in damages for defamation and extortion. The lawsuit was dismissed in June 2025.
Last month, Judge Lewis Liman also dismissed Lively’s s*xual harassment allegations, leaving only three claims against Baldoni: retaliation, breach of contract, and aiding and abetting in retaliation.
A Disney Studios executive who has worked with Lively told The Daily Mail that the legal battle has “ruined” her career in Hollywood.
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“The truth is she was never that popular,” the source said. “She had a reputation for being difficult, one of those toxic people who always thinks she knows best.”
The 38-year-old star has “made her bed and she can lie in it,” the insider claimed, adding that people in Hollywood aren’t “shedding tears over her.”
Still, former entertainment lawyer Matthew Belloni told The Guardian that the bitter legal battle “doesn’t help either of them,” noting that “the longer it goes on and the more mud that’s slung,” the more it will affect their careers.
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In a statement, Baldoni’s legal team told Page Six, “We’re very pleased the Court dismissed all s*xual harassment claims and every claim brought against the individual defendants.
“These were very serious allegations, and we are grateful to the Court for its careful review of the facts, law and voluminous evidence that was provided.”
Meanwhile, Lively’s legal team said the harassment claims were dropped due to a technicality.
Among the reasons Judge Liman listed for dismissing most of the case was that Lively was an independent contractor rather than an employee, making her ineligible to bring certain claims.
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Additionally, the harassment claims Lively brought against Baldoni under California law did not hold up because the filming, where the alleged misconduct occurred, took place in New Jersey.
“[Lively] looks forward to testifying at trial and continuing to shine a light on this vicious form of online retaliation so that it becomes easier to detect and fight,” her attorneys said.
After the judge dismissed 10 out of 13 of her claims, the Gossip Girl alum posted a statement on Instagram in which she stressed that she was looking forward to “finally telling my story in full at trial.”
Image credits: Netflix
“The last thing I wanted in my life was a lawsuit, but I brought this case because of the pervasive retaliation I faced, and continue to, for privately and professionally asking for a safe working environment,” she wrote.
“I know it’s a privilege to stand up. I will not waste it. Your support keeps me going.”
Image credits: blakelively
As Lively and Baldoni’s legal teams have failed to reach a settlement, they will face off in court on May 18.
The scandal erupted in 2024 when Lively sued Baldoni, alleging s*xual harassment on the set of their hit film It Ends With Us, where he was both her co-star and director.
Lively claimed that Baldoni would enter her trailer while she was unclothed, pressure her to film intimate scenes that had not been previously discussed, and “kiss, nuzzle, and touch” her without her consent.
Lively released a statement after the majority of her lawsuit was dismissed, saying she will “finally tell my story” at trial
Image credits: blakelively
She alleged that when she voiced her complaints about his alleged inappropriate behavior on set, Baldoni’s team began orchestrating a media smear campaign against her.
Her complaint, first reported by The New York Times, included text messages from Baldoni’s publicists in which they mentioned they were able to “bury” the actress.
In his $400 million defamation countersuit, the It Ends With Us director claimed it was Lively who used false allegations to “ruin” his reputation in Hollywood. He further claimed that she tried to “hijack” the film with the help of her A-list celebrity friends, including Taylor Swift.
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Lively’s team called Baldoni’s defamation suit “another chapter in the ab*ser playbook” and an attempt to “turn the tables on the victim.”
Judge Liman dismissed Baldoni’s lawsuit, explaining that his team had “not adequately alleged that Lively’s threats were wrongful extortion rather than legally permissible hard bargaining or renegotiation of working conditions.”
Image credits: Netflix
The case has involved Lively’s private messages to other A-listers, including Taylor Swift and Ben Affleck. In texts to Swift, Lively called Baldoni the “doofus director of my movie” and allegedly asked for the singer’s support after rewriting a scene from the film.
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