Judge Ends Baldoni’s $400 Million Countersuit

Justin Baldoni’s $400 million defamation countersuit against Blake Lively and Ryan Reynolds has been formally concluded by U.S. District Court Judge Lewis Liman. The decision follows Baldoni and his co-plaintiffs’ failure to file a further amended complaint after the court dismissed their initial case in June 2025.

Judge Liman had previously contacted all parties on October 17 to warn that he would enter a final judgment. Lively, 38, was the only party to respond, asking that the final judgment be declared while keeping her request for legal fees active—a request the judge approved.

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Background of the Legal Dispute

The countersuit was part of the ongoing legal saga stemming from Lively’s December 2024 lawsuit against Baldoni. In her original filing, she alleged misconduct on the set of It Ends With Us, as well as a retaliatory smear campaign, claims which Baldoni has consistently denied.

Baldoni’s countersuit, filed against Lively, her husband Ryan Reynolds, their publicist, and The New York Times, alleged defamation and extortion. In June 2025, Judge Liman dismissed these claims, including Baldoni’s $250 million defamation suit against The New York Times.

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Lively Reacts to the Victory

Following the court’s dismissal, Lively shared an emotional statement on Instagram:

“Like so many others, I’ve felt the pain of a retaliatory lawsuit, including the manufactured shame that tries to break us. While the suit against me was defeated, so many don’t have the resources to fight back.”

She added that the experience strengthened her commitment to advocacy:

“I am now more resolved than ever to continue to stand for every woman’s right to have a voice in protecting themselves, including their safety, their integrity, their dignity and their story.”

Her lawyers called the dismissal a “total victory and a complete vindication,” stating that the court recognized Baldoni’s countersuit as a “sham.”

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Baldoni’s Response

Baldoni’s attorney, Bryan Freedman, disagreed with Lively’s characterization of the outcome, emphasizing that the case involved “false accusations of sexual harassment and retaliation and a nonexistent smear campaign,” which Lively’s team could not substantiate.

Additionally, Judge Liman had ruled in June that Lively’s sexual harassment allegations were legally protected under California law, preventing them from being used as a basis for a defamation claim. The judge also noted that Baldoni and Wayfarer Studios had not proven that Reynolds, the publicist, or The New York Times would have doubted Lively’s claims.

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Trial Set for March 2026

While Baldoni’s countersuit has ended, Lively’s original lawsuit remains active, with trial scheduled for March 2026 in the Southern District of New York. The case continues to attract significant attention due to its high-profile nature, celebrity defendants, and implications for workplace accountability in Hollywood.