Blake Lively and Justin Baldoni Legal Dispute Escalates After Failed Settlement Negotiations
In a significant development, Blake Lively and Justin Baldoni have firmly rejected the latest attempt to settle their intense legal conflict following a meeting with a judge in New York. Both parties declined to bring an end to the bitter case, which centers on allegations of sexual harassment and retaliation by Baldoni during the production of the film It Ends With Us, where the two actors co-starred.
Behind Closed Doors Hearings Yield No Agreement
According to sources, no agreement was reached during the behind closed doors hearings, although further discussions may be scheduled in the near future. Legal representatives for both Lively and Baldoni have been approached for comment but have not provided immediate statements. The hearings occurred just three days after Judge Lewis Liman, who is overseeing the case, dismissed 10 out of Lively's 13 claims, including all allegations related to sexual harassment.
Trial Scheduled for March with Reduced Scope
The case is now slated to proceed to trial on March 18th, but it will focus solely on three counts concerning an alleged 'smear campaign' orchestrated by Baldoni's public relations team. Judge Liman described the Monday meetings as an opportunity for both sides to present their 'updated settlement position' to the court. At the federal court in New York, Magistrate Judge Sarah Cave conducted back-to-back remote phone conferences with the lawyers, starting with Lively's team.
Background of the Legal Claims and Dismissals
In her lawsuit, filed in December 2024, Lively asserted that she suffered damages exceeding $161 million due to Baldoni's alleged sexual harassment on set and a subsequent online 'smear campaign' against her. Baldoni had also initiated a separate $400 million defamation lawsuit against Lively, her husband Ryan Reynolds, and the New York Times, but this case was entirely dismissed by the judge earlier.
In his ruling, Judge Liman addressed specific allegations, stating that Baldoni did not cross boundaries during a dance scene by adding unscripted kisses, noting that creative artists require space to experiment within script bounds without fear of harassment liability. The judge also found that Baldoni did not engage in 'fat shaming' when inquiring about Lively's weight with her personal trainer, emphasizing that physical appearance was integral to the film's production, as acknowledged by Lively herself.
Legal Technicalities and Remaining Claims
Many of Lively's claims were dismissed because she had not signed the Actor Loanout Agreement, a legal document that would have governed sexual harassment issues. Additionally, the judge determined that Lively exercised such significant control over the film that she did not qualify as an employee, thus barring her from suing under the cited laws. However, in a partial victory for Lively, Judge Liman ruled that there is sufficient evidence of a retaliation campaign for a jury to evaluate.
The remaining claims set for trial include breach of contract, retaliation, and aiding and abetting retaliation, all of which Baldoni denies. Following the judge's decision last week, Baldoni's lawyers, Alexandra Shapiro and Jonathan Bach, expressed being 'very pleased' with the ruling. Sigrid McCawley, a member of Lively's legal team, stated to the Daily Mail that the case remains focused on the 'devastating retaliation' and efforts to damage Lively's reputation for advocating safety on set, adding that Lively 'looks forward to testifying at trial'.
