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Baldoni's Counter-Lawsuit Against Lively Dismissed, Lively's Lawsuit Remains Active

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Justin Baldoni's $400 Million Counter-Lawsuit Against Blake Lively Dismissed by Federal Judge

A federal judge has dismissed actor and director Justin Baldoni's $400 million counter-lawsuit against co-star Blake Lively due to Baldoni's failure to file an amended complaint by a court-specified deadline. This development concludes Baldoni's claims, which included civil extortion, defamation, and invasion of privacy. Lively's original lawsuit against Baldoni, alleging sexual harassment and a smear campaign, remains active and is proceeding under a federal judge.

Dismissal of Baldoni's Lawsuit

On October 17, U.S. District Judge Lewis Liman informed all parties that he would enter a final judgment to conclude Justin Baldoni's case. The judge's decision came after Baldoni failed to submit an amended complaint within the timeframe specified after his initial lawsuit dismissal in June.

Blake Lively's representatives responded to the judge, requesting the final judgment be declared and that her request for legal fees remain active, a request the judge granted.

Following the initial dismissal of Baldoni's case in June, lawyers for Blake Lively described it as "a total victory and a complete vindication." At that time, Baldoni's lawyer stated that Lively's "predictable declaration of victory is false" and that they would "march forward" with plans to amend four of the seven claims against Lively. However, these amended claims were not filed by the court's deadline. Baldoni and Wayfarer have not issued a comment regarding the recent dismissal.

Background of the Legal Dispute

The legal dispute between Justin Baldoni and Blake Lively stems from their collaboration on the 2024 film It Ends with Us.

Lively filed a lawsuit against Baldoni in December, accusing him of sexual harassment and waging a smear campaign. Baldoni subsequently filed a counter-lawsuit against Lively, her husband Ryan Reynolds, their publicist, and the New York Times, claiming civil extortion, defamation, and invasion of privacy.

Allegations and Defenses

Lively's lawsuit alleges discriminatory behavior and references Baldoni's comments regarding her appearance. Her attorneys contend that Baldoni violated company policy by discussing his sex life and porn addiction, and by advocating for intimate scenes that Lively reportedly found uncomfortable. A specific incident cited was Wayfarer CEO Jamey Heath allegedly showing Lively an unsolicited video of his wife giving birth. Lively stated in her deposition that these actions constitute sexual harassment.

In response, Baldoni's legal representation has referenced the 2006 California Supreme Court ruling in "Lyle v. Warner Bros." to argue that certain sexual commentary is inherent in creating sexually charged films. Baldoni has also attributed some of the allegations to social awkwardness and impulsive speech, citing neurodivergence in private messages. Notably, Wayfarer Studios, co-chaired by Baldoni, maintains a policy prohibiting sexual comments, stories, innuendos, and remarks about appearance, a policy Baldoni had reviewed during HR training.

Legal Standards and Precedent

The legal standard for actionable harassment, established by the Supreme Court 40 years ago, requires misconduct to be so "severe or pervasive" that it alters the conditions of employment. Judge Lewis Liman is applying this standard to Lively's ongoing case.

The "Lyle v. Warner Bros." case, involving sexual discussions in the "Friends" writers' room, concluded with the court ruling in favor of creative freedom, determining that the conduct did not meet the "severe or pervasive" threshold. Amaani Lyle, the former writers' assistant who filed that suit, described the conduct as including discussions about sex with actors, stories about oral sex, and derogatory terms for women, as well as racial slurs. The Writers Guild of America argued at the time that such speech was essential to the creative process.

Current Status of Lively's Lawsuit

The parties engaged in court-mandated mediation but did not reach a settlement. Both Baldoni and Lively have expressed a willingness to proceed with litigation concerning Lively's active lawsuit.