Blake Lively is taking a bold stand as she seeks to dismiss the $400 million defamation lawsuit filed against her by Justin Baldoni.
In newly released legal documents, Lively’s attorneys sharply criticize the lawsuit, labeling it as a “vengeful and rambling” attempt to misuse the legal system.
They argue that the case has no place in federal court and is a blatant abuse of the legal process.
Legal Battle Escalates
The legal drama between Lively and Baldoni has been intensifying since December 2024.
The dispute started when Lively accused her It Ends With Us co-star, Baldoni, of sexual harassment and retaliatory actions.
Baldoni responded by filing a defamation lawsuit against Lively, her husband, and her publicist.
All involved parties have denied the allegations, and now the legal battle is at a critical juncture.
Potential $100 Million Price Tag
In a surprising turn of events, the legal documents reveal that Baldoni’s studio, Wayfarer Studios, could face a hefty financial burden if the lawsuit is dismissed.
Under California’s Civil Code Section 47.1, a law designed to protect individuals who have experienced sexual harassment, the studio might be on the hook for up to $100 million.
This provision mandates that the losing side in a defamation lawsuit could be forced to pay not only the defendant’s legal fees but also punitive damages and treble damages (three times the jury’s award).
Lively’s Legal Team Responds
Lively’s legal team argues that Baldoni’s lawsuit is a retaliatory measure that violates important legal protections.
They emphasize that individuals who speak out about sexual harassment should be shielded from such retaliatory lawsuits.
The lawyers pointed out that California law, which was recently updated, explicitly protects victims from being financially ruined or silenced through defamation claims.
“The law prohibits weaponizing defamation lawsuits to retaliate against those who’ve spoken out about sexual harassment,” the documents explain.
They further argue that Wayfarer Studios’ decision to file under California law has brought their case directly under the protections of the sexual harassment privilege, which could turn the tables in Lively’s favor.
The Financial Fallout
The legal documents suggest that Wayfarer’s actions may ultimately backfire.
Steve Sarowitz, co-founder of Wayfarer Studios, is mentioned as potentially having to pay the $100 million he allegedly set aside for litigation — but not in the way he had anticipated.
Lively’s lawyers, Matt Gottlieb and Esra Hudson, have called the lawsuit a “profound abuse of the legal process,” stating that it runs directly into three legal obstacles: litigation, fair report, and sexual harassment privileges.
They also note that this could lead to significant financial consequences for Wayfarer Studios, with the lawsuit ultimately putting the studio at risk of paying substantial damages.
A Bigger Picture
Blake Lively’s spokesperson weighed in, highlighting the broader issue at play.
Lively, like many others, has faced the harsh reality of being sued for defamation after speaking out about sexual harassment.
This is precisely why California passed AB 933, the law that codified Civil Code Section 47.1.
It was designed to protect individuals from being financially ruined for having the courage to speak up about harassment.
Lively’s spokesperson expressed that while speaking out has caused her significant pain, it’s important for others to know that there is now legal protection in place for those who find themselves in similar situations.
It’s clear that Lively’s legal team is prepared to fight this battle on all fronts, pushing for the dismissal of the lawsuit while also holding Baldoni’s studio accountable.
The next steps in this legal saga will certainly be closely watched, as they could set important precedents for others in similar circumstances.