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New York, NY – November 4, 2025 – In a decisive procedural defeat for actor-director Justin Baldoni and his production company Wayfarer Studios, U.S. District Judge Lewis J. Liman of the Southern District of New York entered a final judgment on October 31, 2025, formally terminating Baldoni's $400 million defamation and extortion countersuit against his It Ends With Us co-star Blake Lively, her husband Ryan Reynolds, publicist Leslie Sloane, and The New York Times. The ruling caps a tumultuous chapter in one of Hollywood's most acrimonious legal battles, stemming from allegations of on-set sexual harassment and a retaliatory smear campaign during the 2024 film's production and promotion.
The dismissal, first granted in June 2025 on substantive grounds, became irrevocable after Baldoni and his co-plaintiffs—including Wayfarer CEO Jamey Heath, cofounder Steve Sarowitz, crisis PR specialist Melissa Nathan, and publicist Jennifer Abel—failed to file an amended complaint by the court-imposed deadline of June 23, 2025. Judge Liman had explicitly permitted refiling on limited non-defamation claims, such as breach of contract and tortious interference, after determining that Lively's statements in her initial California Civil Rights Department (CRD) complaint were protected under litigation privilege and California's anti-SLAPP laws enacted post-#MeToo.
On October 17, 2025, Liman issued an order to show cause, directing all parties to explain why final judgment should not be entered. Only Lively's team responded, urging the court to close the case while preserving her pending motion for attorneys' fees and sanctions—estimated in the millions—against Baldoni for what her lawyers described as a "frivolous" and "sham" lawsuit designed to intimidate survivors of workplace misconduct. Granting her request, Liman noted in his October 31 order that the Wayfarer plaintiffs "did not do so" in response to the show-cause directive, rendering the June dismissal "final as of June 23, 2025, as to all parties."
Baldoni's separate $250 million libel suit against The New York Times, consolidated into the countersuit for its December 2024 article "'We Can Bury Anyone': Inside a Hollywood Smear Machine," met the same fate. Liman ruled that the Times' reporting, based on Lively's CRD filing and corroborating sources, enjoyed journalistic privilege and showed no evidence of actual malice. A Times spokesperson hailed the outcome as vindication against "a meritless attempt to stifle honest reporting."
Roots of the Feud: From Set Tensions to Courtroom Warfare
The saga traces back to the filming of It Ends With Us, Sony Pictures' adaptation of Colleen Hoover's bestselling novel about domestic abuse. Lively, 38, who starred as Lily Bloom and served as a producer, filed a CRD complaint on December 20, 2024, accusing Baldoni, 41—who directed and played abusive husband Ryle Kincaid—of sexual harassment. She alleged inappropriate behavior, including unscripted intimate contact, discussions of pornography addiction, and comments on her weight, creating a hostile environment. Lively claimed an all-hands meeting yielded agreements for boundaries, but Baldoni later breached them by orchestrating a digital astroturfing campaign via paid consultants to torpedo her reputation during the film's August 2024 release.
Eleven days later, on December 31, 2024, Lively escalated to a federal lawsuit in New York, seeking damages for sexual harassment, retaliation, emotional distress, invasion of privacy, and lost wages. That same day, Baldoni sued the Times; on January 16, 2025, he countersued Lively, Reynolds, Sloane, and Vision PR, alleging they extorted creative control by threatening to derail promotion unless Baldoni ceded final cut and credit. His suit painted Lively as fabricating claims to "steal the film," demanding $400 million for defamation, false light, and civil extortion.
Baldoni has vehemently denied wrongdoing, framing himself as a victim of a coordinated takedown. His attorney, Bryan Freedman, called the June dismissal a "predictable declaration of victory" that was "false," insisting four of seven claims were amendable. Yet no amendments materialized, prompting speculation that Baldoni's team strategically abandoned the countersuit to focus defenses on Lively's active case.
Lively's Camp Celebrates, Eyes Fees; Baldoni Retains Appeal Window
Lively's attorneys, Esra Hudson and Michael Gottlieb, trumpeted the final judgment as "total victory and complete vindication," reiterating that Baldoni's action was "retaliatory" and baseless. In June, post-initial dismissal, Lively posted on Instagram: "I am more resolved than ever to continue to stand for every woman’s right to have a voice." Her team has pursued sanctions under New York's anti-SLAPP statute and federal rules, potentially saddling Baldoni with seven-figure fees.
Freedman countered that the ruling was misrepresented, emphasizing no appeal deadline was missed—only the amendment window—and that resources are now channeled toward the March 2026 trial. Baldoni may appeal once fees are resolved, a process that could extend into 2026.
Broader Fallout: Subpoenas, Depositions, and Industry Ripples
The feud has ensnared Hollywood's elite. Subpoenas flew to Taylor Swift (Lively's friend, texts potentially relevant), Reynolds, Hoover, and castmates like Isabela Ferrer, who accused Baldoni of harassment over discovery disputes. Depositions, including Lively's in July 2025, have proceeded amid gag-order bids and publicity complaints.
The Times countersued Wayfarer in October 2025 for $150,000 in fees. Insurer Harco National sought declaratory relief, arguing harassment predated policies.
Industry watchers note the case's chilling effect on #MeToo-era accountability. "This highlights protections for survivors filing complaints," said a legal expert unaffiliated with the parties, "while exposing risks of weaponized litigation."
Path Ahead: Trial Looms in March 2026
Lively's core suit—Lively v. Wayfarer Studios LLC et al.—remains consolidated and robust, alleging violations of federal and state labor laws. Judge Liman set jury trial for March 9, 2026, in Manhattan, with pretrial conferences addressing discovery and publicity.
As Hollywood braces for a spectacle rivaling Depp v. Heard, both sides dig in. Baldoni, leaning on family and faith amid reported financial strain, insists truth will prevail. Lively, empowered by the dismissal, vows to expose systemic issues.
For now, Baldoni's multimillion-dollar offensive has ended—not with a bang, but a missed deadline. The real reckoning awaits jurors next spring.
