Justin Baldoni decides to drop defamation lawsuit against Blake Lively and Ryan Reynolds after judge dismisses case in California

Justin Baldoni decides to drop defamation lawsuit against Blake Lively and Ryan Reynolds after judge dismisses case in California

What started as a fiery courtroom battle between Blake Lively and Justin Baldoni is now cooling down—at least on one front.

After months of legal back-and-forth, it’s now been confirmed that Baldoni will not be reworking or re-filing his massive $400 million defamation lawsuit against Lively, her husband Ryan Reynolds, or her longtime publicist Leslie Sloane.

Baldoni Steps Back from the Defamation Lawsuit

Baldoni’s legal team, led by attorney Bryan Freedman, released a statement on Tuesday confirming that they’re walking away from the option to revise and refile their tossed-out claims.

Although Judge Lewis J. Liman had previously dismissed the suit, he had allowed Baldoni the option to amend specific allegations.

Instead, his team says they’re looking into “other legal options.”

In his statement to DailyMail.com, Freedman insisted the dismissal doesn’t reflect the truth of the situation: “There was no harassment, no smear campaign,” he said.

“We’re still confident we’ll prevail against Lively’s accusations.”

But when it comes to that $400 million lawsuit? That chapter is closed.

Blake Lively’s Team Celebrates Court Win

Lively’s team didn’t hold back in their response.

“The Court dismissed the frivolous $400 million Baldoni–Wayfarer lawsuit in its entirety,” a spokesperson said. “His lawyer claimed he’d refile.

As usual, that wasn’t true. This was a total victory.”

Lively has not slowed down her own case, either.

She’s continued to issue subpoenas and push forward in court against Baldoni and several of his collaborators.

Why the Court Tossed Baldoni’s Claims

Judge Liman’s detailed 132-page ruling broke down exactly why Baldoni’s suit lacked merit. The judge said the accusations—particularly the one claiming Lively and her team committed “civil extortion” to gain creative control of It Ends With Us—didn’t hold up legally.

Lively, Reynolds, and Sloane, according to the judge, actually had the stronger argument.

 He pointed out that demanding a say in the film or making certain promotional decisions doesn’t equate to extortion—it’s often just tough negotiations.

No Fees or Damages—Yet

Though Baldoni’s lawsuit was dismissed, the judge didn’t grant Lively or her co-defendants’ requests for legal fees, treble damages, or punitive penalties—at least not yet.

Those motions were denied without prejudice, meaning they could be revisited later.

Baldoni’s studio, Wayfarer, which he co-founded with billionaire Steve Sarowitz, is also still in the legal spotlight—especially after being accused of retaliation and smear tactics.

Marvel Studios Walks Away Unscathed

One unexpected name caught in the crossfire? Marvel Entertainment.

Baldoni’s legal team had subpoenaed Marvel, suggesting that a character from Deadpool & Wolverine—Nicepool—was created to mock him. But that theory didn’t fly in court.

Judge Liman threw out the Marvel subpoena entirely, issuing a protective order to keep Marvel’s internal documents confidential.

Lively Pushes Her Own Case Forward

While Baldoni’s lawsuit is now shelved, Lively’s case continues to grow.

Her original federal civil rights complaint, filed in late 2023, accuses Baldoni of sexual harassment—including body shaming—and a coordinated smear campaign aimed at ruining her career.

She claims Baldoni retaliated after she spoke up about misconduct on set. Baldoni, in turn, has denied everything and accused Lively of twisting their communications.

A Messy Legal Fallout for Baldoni

Since Lively went public with her complaint, the fallout for Baldoni has been significant.

He’s facing other lawsuits—including one from a former publicist—and was dropped by his talent agency, WME.

Notably, WME also represents both Lively and Reynolds.

Despite conspiracy theories, the agency says the decision was entirely their own.

Adding to the drama, Baldoni and his team launched a website—thelawsuitinfo.com—where they posted text messages and court documents, hoping to sway public opinion.

Lively’s team dismissed it as part of the smear campaign she’s fighting against.

The Film at the Center of the Storm

At the heart of this legal showdown is the romantic drama It Ends With Us, based on Colleen Hoover’s best-selling novel.

Despite the off-screen controversy, the film—starring Lively, Jenny Slate, and Hasan Minhaj—was a box office hit, grossing $350 million worldwide.

Still, the success of the film has done little to cool tensions between its lead star and director.

A History of High-Profile Careers

Both Lively and Baldoni came into this battle with impressive résumés.

Lively gained fame from Gossip Girl and starred in films like A Simple Favor and The Shallows.

Baldoni is best known for his role as Rafael in Jane the Virgin and for directing emotional dramas like Five Feet Apart.

But their legal saga has taken center stage—overshadowing even their Hollywood careers, at least for now.