Justin Baldoni will pay Blake Lively’s legal fees after the pair settled their It Ends With Us dispute, a court ruled.
According to court documents obtained by Us Weekly on Friday, June 12, Judge Lewis J. Liman ruled that Lively, 38, was entitled to recover her defense costs under a 2023 California law meant to protect sexual abuse accusers from retaliatory defamation suits.
Liman, however, denied Lively’s request for triple damages and punitive damages, finding that those remedies are not available under federal law.
“The Court concludes that, on this record, the Wayfarer Parties have failed to carry their burden of demonstrating that the Section 47.1 privilege does not apply, and Lively is therefore entitled to fees and costs,” the judge wrote in court documents before concluding that “Lively’s request for damages must be denied” on procedural grounds.
Lively’s attorneys Esra Hudson and Michael Gottlieb reacted to the news in a statement to Us.
“Today’s ruling makes it clear that Ms. Lively brought her claims in good faith, that there was no evidence she acted with malice and that she is the prevailing defendant under Section 47.1,” the statement read. “The Court is awarding Ms. Lively attorneys’ fees and costs and has explained that a prevailing defendant under Section 47.1 may seek damages using different procedural mechanisms. The parties’ settlement agreement expressly preserves Ms. Lively’s rights to obtain those damages. Ms. Lively is gratified that her lawsuit shows how Section 47.1 and laws like it create a path for survivors to hold accountable those who weaponize online attacks and retaliatory lawsuits to intimidate and silence survivors.”
Baldoni’s lawyer Bryan Freedman also spoke out after the judge’s latest ruling.
“We fought and won against a coordinated effort built on allegations of sexual harassment, retaliation, and a smear campaign that never happened. Ms. Lively demanded over $300 million in fees and damages, had 10 of her 13 claims dismissed, she then chose to settle and received nothing,” Freedman said in a statement to Us. “Notwithstanding that all of her sexual harassment and defamation claims were thrown out by the court, Ms. Lively then pivoted to exploit a California law that was established to protect real victims in what proved to be a fruitless mission to obtain damages. Once again, she failed.”
Freedman continued, “Ms. Lively was only awarded limited attorney fees for a single claim as part of a case that lasted only a matter of months, nothing more. Throughout this process, innocent people had their reputations unfairly tarnished. There was no sexual harassment. There was no retaliation. There was no smear campaign. The court recognized it, the record reflects it, and we have maintained it from the very beginning. We would not hesitate to stand up for the truth again.”
Hours before Lively made an appearance at the 2026 Met Gala on May 4, news broke that Lively and Baldoni, 42, had reached a settlement in their highly contentious It Ends With Us legal dispute.
Although details surrounding the settlement were kept private, both parties released a joint statement expressing “closure” in the matter.
“The end product — the movie It Ends With Us — is a source of pride to all of us who worked to bring it to life. Raising awareness, and making a meaningful impact in the lives of domestic violence survivors — and all survivors — is a goal that we stand behind,” attorneys for both parties said in a statement to Us Weekly at the time. “We acknowledge the process presented challenges and recognize concerns raised by Ms. Lively deserved to be heard.”
The statement continued, “We remain firmly committed to workplaces free of improprieties and unproductive environments. It is our sincere hope that this brings closure and allows all involved to move forward constructively and in peace, including a respectful environment online.”
After the settlement was made public, Baldoni’s attorney called the result “a win and total victory” for the Wayfarer parties. Lively’s legal team, however, claimed she was “entitled” to receive damages because of the “harm” she suffered as a result of the case.
Lively and Baldoni’s legal drama began in December 2024, when the actress accused her It Ends With Us costar and director of sexual harassment, creating a hostile work environment and purposefully creating a smear campaign targeting the actress.
Baldoni strongly denied the allegations throughout the legal battle and counter-sued Lively. In June 2025, a judge dismissed his lawsuit against the actress.
In April, Lively experienced her own legal setback when a judge ruled that most of the Gossip Girl alum’s legal claims against Baldoni would be dismissed. Some of the charges dismissed included allegations of harassment, defamation and conspiracy.
