Settlement Ends Protracted Baldoni-Lively Legal Battle, Judge Orders Attorney Fees

Blake Lively filed a California Civil Rights Department complaint in December 2024 alleging severe emotional distress and sexual harassment on set of *It Ends With Us* by director-actor Justin Baldoni. Baldoni sued The New York Times for libel on December 31, 2024, and Lively filed a New York suit against Baldoni, Ryan Reynolds, and others the same day. The suits were consolidated in early 2025. A $400 million defamation claim by Baldoni was dismissed in June 2023, and a federal judge in April 2024 dismissed most of Lively’s claims, leaving only a limited retaliation allegation.

Does it end with this? Justin Baldoni's lawyer publishes settlement with Blake LivelyBlake Lively can seek legal fees against Justin Baldoni in defamation case but no damages, judge rulesThe WrapHollywood Reporter

The parties settled, ending all litigation, barring future claims, and issuing a joint statement. Lively’s request for attorney fees under Section 47.1 remains pending; the court rejected her claim for compensatory or punitive damages. No monetary payment was made.

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Key figures: the $400 million Baldoni defamation claim was dismissed; Lively’s legal-fee estimate is $30-$60 million; Section 47.1 provides limited relief; the attorney-fee award remains undetermined.

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The parties issued a joint statement affirming a commitment to workplaces free of improprieties and hoping for closure and a respectful online environment. Baldoni’s attorney Bryan Freedman said the settlement “won’t be able to resurrect the ruling that she’s entitled to her attorney’s fees” and urged “move on.” Judge Lewis J. Liman clarified that Section 47.1 “does not create an end run around the set of federal procedural rules” and that treble and punitive damages are not “costs” under Rule 54(d).

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Michael Gottlieb, Lively’s lead counsel, said the defamation suit shifted sentiment against her, calling it “frivolous.” Freedman called the settlement’s lack of monetary payment illogical, asking why a party would settle without money.

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The court ordered Lively’s attorney-fee award, but the exact amount remains undecided. Lively could still pursue a separate damages claim for alleged retaliatory defamation, though no timeline has been set.

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• “To allow them to have peace. To allow Justin to have time with his family, unmitigated time where his mind is elsewhere. To allow him to continue moving on with his career.” — Bryan Freedman, Attorney for Justin Baldoni

Does it end with this? Justin Baldoni's lawyer publishes settlement with Blake Lively

• “All Blake Lively needed to do was to say, ‘No, I’m not settling. Let’s go to the trial and the jury of our peers, and let’s see what we can get,'” — Bryan Freedman, Attorney for Justin Baldoni

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• “Because treble and punitive damages are neither ‘costs’ nor ‘attorneys’ fees’ under Rule 54(d), Lively cannot seek them pursuant to the procedures outlined in that provision,” — Judge Lewis J. Liman

Blake Lively can seek legal fees against Justin Baldoni in defamation case but no damages, judge rules

• “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.” — Joint statement of Justin Baldoni and Blake Lively

Does it end with this? Justin Baldoni's lawyer publishes settlement with Blake Lively

Judge Liman will soon set the precise attorney-fee amount under Section 47.1. Lively may still pursue a separate damages claim for alleged retaliatory defamation, though her counsel says it is time to move on. Both parties have indicated they will keep future public comments minimal.

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