What's happened
Blake Lively has been awarded legal costs totaling $8,035,040.88 in the It Ends With Us dispute; a judge has ruled she is entitled to fees and costs from Justin Baldoni’s countersuit, while damages were rejected. The settlement occurred in May 2026, with implications for future retaliation cases.
What's behind the headline?
Key developments
- Lively has secured costs tied to Baldoni’s countersuit; punitive damages were not granted.
- The ruling hinges on a California law protecting harassment survivors from retaliatory lawsuits and requires the plaintiff to cover the defendant’s legal costs if a defamation claim is dismissed.
- Lively’s team characterizes Baldoni’s tactics as ‘scorched-earth litigation,’ arguing it aimed to drain resources and deter truth-telling.
- The judge left open the possibility of malice, but found insufficient evidence to prove it.
Implications
- This decision reinforces financial accountability in high-stakes entertainment industry disputes.
- It may deter aggressive court campaigns designed to silence critics, encouraging faster settlements when appropriate.
- The outcome could influence similar cases and how costs are allocated in defamation-driven countersuits.
How we got here
The dispute began in late 2024 when Lively accused Baldoni of sexual harassment on the It Ends With Us set. Baldoni countersued for defamation and extortion, which was later dismissed in 2025. A May 2026 settlement closed the main lawsuit, and a June 2026 ruling clarified the allocation of costs under California law intended to protect harassment survivors.
Our analysis
Independent reports summarize the court filings, noting the exact fee totals and the California legal framework. Guardian coverage provides quotes from Lively’s lawyers regarding the landmark nature of the ruling. AP News and The Guardian corroborate the judicial decision, while Deadline frames the lawyers’ reaction to the ruling.
Go deeper
- Could future cases adopt this cost-shifting approach in similar disputes?
- Will this ruling influence how studios structure settlements in harassment cases?
- What will Lively do next as this legal chapter closes?
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