Lively Seeks Fees From Baldoni After Settlement

Attorneys for Blake Lively and Justin Baldoni returned to a Manhattan federal court on June 1, weeks after settling their lawsuit, to argue over Lively's demand that Baldoni pay her legal fees and damages, USA Today reported.

The hearing before U.S. District Judge Lewis Liman concerns Lively's request that Baldoni, 42, cover costs, fees and damages tied to the defamation lawsuit he filed against her in January 2025 — a $400 million case the judge dismissed in June 2025, according to court documents obtained by USA Today and Page Six.

Lively, 38, is invoking a new California law intended to protect people who file harassment complaints from retaliatory defamation suits. She asserts she is entitled to attorney's fees and costs, punitive damages and treble damages — a penalty that triples actual damages — USA Today reported. The total amount she is seeking is unclear; The Guardian, citing Agence France-Presse, reported it could not immediately obtain the sum sought.

What each side argues

Lively's lawyers argue the statute "helps take the burden off of survivors by providing reasonable attorneys' fees and damages if they successfully defend themselves against meritless lawsuits," according to filings cited by USA Today.

Baldoni's attorney, Ellyn S. Garofalo, countered in a letter to Liman that "there is no authority to support the notion" that the California statute "can be used to do an end run around a plaintiff or defendant's right to a jury trial." Garofalo also argued that because Lively dismissed her own claims and relinquished her right to appeal, she is not entitled to damages, USA Today reported.

Retaliatory defamation suits aimed at silencing accusers are a recurring issue in U.S. courts; many states have passed anti-SLAPP laws designed to protect speech from such litigation, and legal commentators have documented how suing one's critics can backfire.

How the case got here

Lively sued Baldoni and his production company, Wayfarer Studios, in December 2024, alleging he sexually harassed her on the set of the 2024 film "It Ends With Us," which he also directed, and that he helped orchestrate a smear campaign against her. Baldoni denied the allegations and countersued Lively, her husband, Ryan Reynolds, their publicist and The New York Times for defamation and extortion, according to the BBC.

Liman dismissed Baldoni's countersuit in June 2025, ruling his claims of civil extortion, defamation and false light did not hold up legally, USA Today reported. The judge later dismissed most of Lively's own claims, leaving three causes of action — breach of contract, retaliation, and aiding and abetting retaliation — ahead of a trial scheduled for May 18, according to the BBC.

The parties settled before trial. Reports differ on the timing: Page Six and the BBC reported the settlement was reached on May 4, about two weeks before trial, while USA Today described it as coming days before the May 18 trial date. The full terms have not been publicly disclosed, The Guardian reported. Page Six reported the two sides spent a combined $60 million on the 18-month legal fight and that no money changed hands in the settlement.

What the settlement said

In a joint statement announcing the settlement, attorneys for both actors said the film "is a source of pride to all of us who worked to bring it to life" and that the parties "hope that this brings closure and allows all involved to move forward constructively and in peace," according to the BBC.

Both camps claimed victory. Baldoni's attorney Bryan Freedman called the settlement a "huge victory," while Lively's team called it a "resounding victory," Page Six reported. For people facing similar litigation, the dispute illustrates what happens once a lawsuit lands — and how fee-shifting fights can outlast the underlying case.

What happens next

Liman will decide whether the California statute entitles Lively to fees and damages from a dismissed federal defamation case, or whether, as Baldoni's side argues, the request improperly bypasses the right to a jury trial. USA Today reported it has reached out to representatives for both actors for comment.

Frequently Asked Questions

Why are Blake Lively and Justin Baldoni back in court after settling?

The settlement resolved Lively's lawsuit, but she is separately seeking attorney's fees, costs, punitive damages and treble damages tied to Baldoni's dismissed $400 million defamation suit against her. A hearing on that request was held June 1 before Judge Lewis Liman.

What California law is Lively relying on?

A new California statute designed to protect people who file harassment complaints from retaliatory defamation lawsuits. Her lawyers say it provides fees and damages to those who successfully defeat meritless suits; Baldoni's side says it cannot override the right to a jury trial.

How much money is Lively seeking?

The total is unclear. The Guardian reported the sum could not immediately be obtained, and Page Six reported it is unclear how much Lively wants, though treble damages would triple any actual damages awarded.

What were the terms of the May settlement?

The full terms were not publicly disclosed. Page Six reported that neither side received money under the agreement, and that the two camps spent a combined $60 million in legal fees over 18 months of litigation.

Sources

Reporting compiled from court records and the cited source outlets.