By A federal judge has dealt a major blow to Blake Lively’s legal case against director and co-star Justin Baldoni, dismissing 10 of her 13 claims — including the headline-making sexual harassment allegation. The ruling, issued on April 3, 2026, significantly narrows the dispute with less than seven weeks to go before a scheduled trial.
The Judge’s Ruling: What Was Dismissed
U.S. District Judge Lewis J. Liman tossed out 10 of Blake Lively‘s 13 claims against Justin Baldoni in a 152-page ruling. The dismissed claims include sexual harassment, defamation, and conspiracy — the most explosive allegations at the center of the case.
Blake Lively had accused Justin Baldoni, who also co-starred in the film, of sexually harassing her during production and then orchestrating a smear campaign to retaliate against her for speaking up. Baldoni has denied all allegations throughout the litigation.
The ruling does not end the case. Three claims were allowed to proceed to trial: breach of contract, retaliation, and aiding and abetting in retaliation.
Why the Sexual Harassment Claim Was Thrown Out
The judge’s reasoning hinged on two key legal technicalities — not on whether the alleged conduct occurred.
Judge Liman ruled that Blake Lively could not bring a sexual harassment claim under federal law because she was an independent contractor. He also ruled that she could not file a harassment claim under California law because filming took place in New Jersey.
Lively’s legal team pushed back hard on that framing. Her attorney stated that the sexual harassment allegation was dismissed “not because the defendants did nothing wrong but because the court determined Blake Lively was an independent contractor, not an employee.”
The judge also addressed specific on-set conduct. The ruling noted that Baldoni allegedly kissed Lively’s forehead, rubbed his face against her neck, flicked her lower lip, and said “it smells good” — but Liman concluded Baldoni was acting in the scene at the time.
Liman wrote that creative artists must be allowed some space to experiment within the bounds of an agreed script “without fear of being held liable for sexual harassment.”
What Claims Survive: The Road to Trial
The surviving claims — retaliation and breach of contract — were filed against Wayfarer Studios and the company created to develop the film, not against Baldoni personally.
This is a critical distinction. Even though the sexual harassment claims against Baldoni individually have been dismissed, Judge Liman said jurors could still consider whether the defendants “impermissibly and materially altered” Blake Lively’s career prospects through what she described as a coordinated smear campaign.
Blake Lively claimed she lost $161 million in earnings and damages because of the alleged smear campaign that Baldoni’s team orchestrated around the time of the film’s release. Baldoni’s lawyers have denied those allegations.
The trial is now scheduled to begin on May 18 in New York.
Blake Lively Responds
After the ruling, Blake Lively took to Instagram Stories, writing: “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.”
Her legal team echoed that message. Attorney Sigrid McCawley said Blake Lively “looks forward to testifying at trial and continuing to shine a light on this vicious form of online retaliation so that it becomes easier to detect and fight.”
McCawley made clear the team’s core focus has not changed: “This case has always been and will remain focused on the devastating retaliation and the extraordinary steps the defendants took to destroy Blake Lively’s reputation because she stood up for safety on the set — and that is the case that is going to trial.”
Justin Baldoni’s Team Reacts
Baldoni’s legal team declared the ruling a significant victory.
His attorneys said they were “very pleased” the court dismissed all sexual harassment claims against Baldoni and the individual defendants, including Jamey Heath, Steve Sarowitz, Melissa Nathan, and Jennifer Abel. They called the allegations “very serious” and expressed gratitude for the court’s careful review.
Baldoni’s lawyers described what remains as “a significantly narrowed case” and said they look forward to presenting their defense at trial.
Meanwhile, Baldoni’s spokesperson pushed back on Lively’s public framing: a Baldoni attorney told E! News that Lively’s “predictable declaration of victory is false,” adding that “this case is about false accusations of sexual harassment and retaliation and a nonexistent smear campaign.”
The Full Legal Timeline
This legal battle has been building for over a year. Here’s how it unfolded:
- August 2024 — It Ends With Us opens in theaters, grossing over $50 million in its debut weekend. The film ultimately earned $350 million worldwide. Reports of behind-the-scenes tension between Lively and Baldoni begin to surface.
- December 2024 — Blake Lively files a complaint with the California Civil Rights Department on December 20, accusing Baldoni of sexual harassment and retaliation. She then files a federal lawsuit on December 31.
- January 2025 — Justin Baldoni files a countersuit against Blake Lively and Ryan Reynolds seeking $400 million, alleging defamation and extortion.
- February 2025 — Lively files an amended complaint alleging Baldoni made other women uncomfortable on set. A court-ordered settlement conference takes place, but no resolution is reached.
- June 2025 (approx.) — A federal judge dismisses Baldoni’s $400 million countersuit against Lively, Reynolds, and The New York Times.
- April 3, 2026 — Judge Liman dismisses 10 of 13 claims in Lively’s lawsuit. Three claims proceed to trial.
What Happens Next
The case heads to a jury trial beginning May 18, 2026, in New York. After the judge issued his ruling, lawyers held a brief phone conference to discuss jury selection for the trial.
Blake Lively will have the chance to testify about the alleged retaliation campaign. Baldoni and Lively attended a court-ordered mediation session in February but did not reach a settlement. With no deal on the table, a public trial now appears all but certain.
The case has already drawn in multiple high-profile names. Taylor Swift became part of the story after texts between her and Lively were unsealed as court evidence, including one where Swift referred disparagingly to Baldoni.
For Blake Lively, Thursday’s ruling is a setback on the harassment front but not a full defeat. The retaliation claims at the heart of her argument remain intact — and those are the claims that go before a jury in just weeks.
