A federal judge has dismissed most claims, including sexual harassment, in actress Blake Lively's lawsuit against her "It Ends With Us" director and co-star Justin Baldoni. U.S. District Judge Lewis J. Liman, in a ruling issued on April 2, 2026, allowed three claims to proceed to a trial scheduled for May 18, 2026. These remaining claims focus on allegations of breach of contract, retaliation, and aiding and abetting in retaliation. The judge cited Lively's status as an independent contractor, jurisdictional issues, and the context of artistic expression as reasons for dismissing the sexual harassment claims.
Background of the Lawsuit
Blake Lively and Justin Baldoni co-starred in, and Baldoni directed, the 2024 film "It Ends With Us," an adaptation of Colleen Hoover's novel. The film, which portrays Lively's character as a flower shop owner whose husband (played by Baldoni) subjects her to physical and emotional abuse, exceeded box office expectations, grossing over $350 million worldwide. However, its release was accompanied by speculation of discord between Lively and Baldoni.
Lively initially filed a complaint with the California Civil Rights Department on December 20, 2024, alleging sexual harassment and retaliation. This was followed by a federal civil lawsuit on December 31, 2024. In late February 2025, Lively filed an amended complaint seeking compensatory and punitive damages, alleging a "multi-tiered plan" by Baldoni and his team to damage her reputation. She claimed $161 million in losses due to an alleged smear campaign, with some sources reporting her seeking as much as $500 million in damages.
"Lively's lawsuit alleges a 'multi-tiered plan' by Baldoni and his team to damage her reputation, claiming $161 million in losses due to an alleged smear campaign, with some sources reporting her seeking as much as $500 million in damages."
Baldoni filed a countersuit for $400 million, alleging civil extortion, defamation, and invasion of privacy against Lively, her husband Ryan Reynolds, their publicist, and The New York Times. Judge Liman dismissed Baldoni's countersuit in June 2025. Baldoni was given an opportunity to file an amended complaint, but failed to do so, leading to the formal closure of his case on October 17, 2025. Court-ordered settlement conferences between Lively and Baldoni in early February 2025 were unsuccessful.
Judicial Ruling Details
U.S. District Judge Lewis J. Liman in Manhattan dismissed 10 of Lively's 13 claims against Baldoni and other defendants associated with his production company, Wayfarer Studios. These dismissed claims included allegations of harassment, defamation, and conspiracy.
Dismissal of Sexual Harassment Claims
Judge Liman cited multiple reasons for the dismissal of the sexual harassment claims:
- Independent Contractor Status: The judge determined that Lively was an independent contractor for the film, not an employee. This classification precluded her from bringing sexual harassment claims under Title VII of the Civil Rights Act of 1964, which applies to employees.
- Jurisdictional Grounds: The ruling also noted that Lively had filed some claims under a California law, but the alleged conduct primarily occurred in New Jersey, outside of California's jurisdiction for those specific claims.
- Context of Artistic Expression: In his 152-page opinion, Judge Liman stated that Baldoni's alleged actions, such as leaning in as if to kiss Lively, kissing her forehead, rubbing his face and mouth against her neck, flicking her lower lip with his thumb, caressing her, and commenting on her scent, must be viewed within the context of acting in a scene. He acknowledged that such conduct would typically support a hostile work environment claim in other professional settings. However, the judge concluded that the conduct, "at least in isolation," was not "so far beyond what might reasonably be expected to take place between two characters during a slow dancing scene" and appeared directed at Lively's character rather than at Lively personally. Judge Liman emphasized that creative artists require "some amount of space to experiment within the bounds of an agreed script without fear of being held liable for sexual harassment." He also stated that Baldoni suggesting scenes involving sexual acts, in the context of developing a sexually charged film, did not create a "sexually objectionable environment."
"Judge Liman emphasized that creative artists require 'some amount of space to experiment within the bounds of an agreed script without fear of being held liable for sexual harassment.'"
Claims Advancing to Trial
Despite the dismissal of the direct sexual harassment claims, Judge Liman permitted three claims to proceed to trial:
- Breach of contract against It Ends With Us Movie LLC.
- Two retaliation claims against It Ends With Us Movie LLC and Wayfarer Studios.
- Aiding and abetting in retaliation, against an unnamed public relations firm working for Baldoni.
The judge stated that some of Lively's allegations, including those related to sexual harassment, could be presented to a jury as supporting evidence for these surviving claims. Judge Liman indicated that evidence might lead a jury to conclude that Baldoni's production company intended to damage Lively's reputation and career due to concerns she might file a discrimination claim. He noted that certain actions in Baldoni's alleged crisis public relations campaign "arguably crossed the line" from acceptable defense to an attack on Lively's professional reputation and livelihood, highlighting that the "reputational effects have been particularly severe given the nature of Lively's profession."
Lively's Allegations and Baldoni's Responses
Blake Lively's Allegations
- Lively's legal team stated she was "kissed, nuzzled, and touched" without her consent and that Baldoni was "consistently inappropriate" and crossed "boundaries" on set.
- Specific alleged physical actions by Baldoni included leaning in as if to kiss, kissing her forehead, rubbing his face and mouth against her neck, putting his thumb to her mouth and flicking her lower lip, caressing her, and leaning into her neck while saying, "It smells good."
- Baldoni allegedly commented "pretty hot" after asking Lively to remove her jacket, revealing a lace bra. When warned this was inappropriate, he reportedly rolled his eyes and responded, "Sorry, I missed the sexual harassment training."
- Baldoni reportedly advocated for Lively to perform a birth scene naked, which was then filmed over several hours without closing the set to non-essential personnel.
- Baldoni allegedly volunteered his past addiction to pornography, and after Lively stated she had never seen pornography, he reportedly announced this information to others on set. The judge noted this might have "crossed a line."
- Lively also alleged Baldoni made remarks about her weight and body.
- Wayfarer CEO Jamey Heath, Baldoni's partner, allegedly showed Lively an unsolicited video of his wife giving birth, which Lively stated constitutes sexual harassment.
- Lively accused Baldoni and Wayfarer Studios of orchestrating a "smear campaign," a "multi-tiered plan," or a "coordinated effort to destroy her reputation" after she spoke out about an allegedly toxic work environment and reported misconduct. She also described experiencing "pervasive RETALIATION" for privately and professionally seeking a safe working environment.
Justin Baldoni's Responses and Defense
- Baldoni's attorneys denied the sexual harassment allegations.
- An attorney for Baldoni argued during a January 2025 court hearing that Lively was aware "It Ends With Us" would feature "hot and sexy scenes" when she signed on, suggesting the allegations were part of the creative process.
- Baldoni's legal team denied the alleged $161 million loss and asserted that any online criticism against Lively originated organically.
- Baldoni contended that a crisis public relations firm was hired to protect his own reputation, not to harm Lively's.
- Baldoni stated he addressed Lively's concerns promptly upon their initial raising.
- Baldoni's legal representation referenced the 2006 California Supreme Court ruling in "Lyle v. Warner Bros.," which favored creative freedom in cases involving sexual commentary, to argue that certain discussions are inherent in creating sexually charged films.
- Baldoni privately attributed some of the allegations to social awkwardness and impulsive speech, citing neurodivergence.
- Baldoni's attorney Bryan Freedman stated that the defendants are "very good people who have not engaged in this sexual harassment as alleged."
Statements Following the Ruling
Blake Lively's Statement
Lively issued a statement via Instagram, expressing gratitude that the case would proceed to trial, allowing her to "tell [her] story in full." She stated that the lawsuit was initiated due to "pervasive RETALIATION" she faced for privately and professionally seeking a safe working environment. Lively encouraged other potential victims to speak out about "retaliation and digital warfare," describing "physical pain from digital violence" as abuse. She vowed to continue "fighting to expose the systems and people who seek to harm, shame, silence and retaliate against victims," adding, "I know it's a privilege to be able to stand up. I will not waste it."
Lively's Legal Team
Lively's attorney, Sigrid McCawley, stated that Lively "looks forward to testifying at trial and continuing to shine a light on this vicious form of online retaliation." McCawley added that the case "has always been and will remain focused on the devastating retaliation and the extraordinary steps the defendants took to destroy Blake Lively's reputation because she stood up for safety on the set." Another of Lively's attorneys, Mike Gottlieb, clarified that the dismissal of the sexual harassment claims was based on "legal technicalities" (Lively's independent contractor status and the location of the alleged conduct in New Jersey versus California), not an endorsement of the defendants' conduct. Gottlieb criticized Baldoni's legal team for claiming exoneration based on these technicalities.
Baldoni's Legal Team
Baldoni's attorneys, Alexandra Shapiro, Jonathan Bach, and Bryan Freedman, expressed satisfaction with the court's decision, noting that the case has been "significantly narrowed." They stated that all sexual harassment claims and all claims against individual defendants, including Justin Baldoni, Jamey Heath, Steve Sarowitz, Melissa Nathan, and Jennifer Abel, were dismissed. They expressed gratitude to the court for its "careful review of the facts, law and voluminous evidence" and anticipate presenting their defense for the remaining claims in court. Freedman reiterated that the defendants "have not engaged in this sexual harassment as alleged."
WME (Blake Lively's Talent Agency)
WME issued a statement reiterating its full support for Lively, commending her for choosing to "stand up for herself, her castmates, and those without the ability to fight back." The agency stated that Lively has helped "expose the devastating harm caused by covert digital takedown campaigns designed to intimidate, discredit, and drown out the truth."
Upcoming Trial
The trial for the remaining claims is scheduled to begin on May 18, 2026, and is anticipated to last approximately one month in federal court in New York. Blake Lively, Justin Baldoni, and Ryan Reynolds are expected to testify. Taylor Swift and Hugh Jackman are also listed as potential witnesses, though their attendance remains unconfirmed. The trial will focus on whether the social media narrative surrounding Lively and "It Ends With Us" was organic or orchestrated by Baldoni's public relations team.
Industry Context
Wayfarer Studios, co-chaired by Baldoni, has a company policy prohibiting sexual comments, stories, innuendos, and remarks about appearance, which Baldoni had attended HR training to review. The legal standard for actionable harassment, established by the Supreme Court, requires misconduct to be so "severe or pervasive" that it alters the conditions of employment. This standard was applied by Judge Liman, following precedent such as the 2006 California Supreme Court ruling in "Lyle v. Warner Bros." which involved discussions in the "Friends" writers' room and concluded in favor of creative freedom.