Topline
Blake Lively and Justin Baldoni’s sprawling legal battle isn’t over, despite the parties announcing earlier this week they had reached a settlement agreement, as Lively’s lawyers say she intends to seek damages under a California law that was passed to protect accusers of sexual misconduct from retaliatory defamation suits.
Lively and Baldoni announced a settlement earlier this week. (Photo by ANGELA WEISS / AFP via Getty Images)
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Key Facts
Lively’s lawyers said in a court filing Thursday all parties have “fully and finally resolved all claims in the Consolidated Action, except one,” referring to Lively’s claims for attorney’s fees and damages under the California law.
Earlier this week, the “It Ends With Us” stars announced they had finally reached a settlement in the legal saga that began at the end of 2024, as Lively accused Baldoni of sexual harassment and orchestrating a retaliatory smear campaign against her, and Baldoni accused Lively of defamation.
Reports said Lively did not earn any money as part of the settlement agreement, but if her claim under California law for damages succeeds in court, Deadline reported she could earn damages in the millions.
Thursday’s court filing says the California law, Civil Code Section 47.1, imposes “severe and mandatory penalties” against anyone who files “unsuccessful retaliatory defamation actions against sexual harassment and retaliation complainants.”
Lively’s lawyers claimed in the filing that Baldoni’s defamation suit was retaliatory and that it satisfies “all elements” of the law to entitle Lively to damage payments.
Forbes has reached out to lawyers representing Lively and Baldoni for comment.
What Do We Know About Lively And Baldoni’s Settlement?
Attorneys for both parties have framed the settlement as a victory for their clients. Lively’s lawyers, Michael Gottlieb and Esra Hudson, told Forbes on Thursday the settlement is a “resounding victory for Blake Lively,” noting her claim for damages intends to hold Baldoni and co-defendants accountable for “abusing the legal system to silence and intimidate Ms. Lively.” Baldoni’s lawyer, Bryan Freedman, told Extra on Wednesday he is “very pleased” with the settlement. “I can’t talk about the terms of the settlement, but what I can tell you is that [Baldoni] is ecstatic,” Freedman said.
Tangent
The California law Lively is invoking was passed in 2023 in response to the Me Too movement, intended to protect accusers of sexual misconduct from retaliatory defamation suits. The law says if a defendant in a defamation case is found not to have defamed the other party, the defendant would be “entitled to reasonable attorney’s fees and costs,” as well as “treble damages for any harm caused to them by the defamation action against them, in addition to punitive damages available.” The law is still largely untested in court, the New York Times reported, noting there is little precedent for how the judge overseeing the case should proceed.
Key Background
Baldoni, the lead actor and director of “It Ends With Us,” and Lively, his co-star, have been locked in a legal saga that largely overshadowed their film, which hit theaters in the summer of 2024. While promoting their movie, fans noted the two never appeared together in interviews, leading to speculation of a feud. In December of that year, Lively filed a complaint in California court accusing Baldoni of sexual harassment, and the New York Times published an article detailing an alleged smear campaign Baldoni’s public relations team plotted against Lively. Baldoni filed a defamation suit against the Times shortly after, which was dismissed, and Lively sued Baldoni in federal court, making largely the same claims as in her California complaint. Baldoni sued Lively in January 2025, alleging defamation, though a judge dismissed the suit in June. Lively’s lawsuit was set to proceed to trial in May, though weeks before, a judge tossed many of her claims, leaving just her allegations of breach of contract, retaliation, and aiding and abetting in retaliation.
Further Reading
Baldoni Vs. Lively Feud: Settlement Reached— Finally Ending Legal Saga (Forbes)