Baldoni's lawyer claims victory as judge awards Lively limited attorney fees in settlement

Women bringing good-faith harassment claims shouldn't face financial annihilation
Lively's legal team responded to Baldoni's attorney's statement by arguing the law protects legitimate claimants from being sued into silence.

In the long aftermath of a Hollywood production shadowed by allegations of harassment and reputational warfare, a federal judge has drawn a careful, limited line: Blake Lively may recover some legal costs from defending herself against Justin Baldoni's countersuit, but the broader damages she sought will not materialize. The ruling, narrow by design, satisfied neither side fully — and perhaps that is the truest measure of how contested the underlying reality remains. What the law could adjudicate and what the public still wonders about are not the same territory.

  • A federal judge awarded Lively only partial attorney fees — rejecting triple and punitive damages — leaving both sides to claim the ruling as their own vindication.
  • Baldoni's attorney declared sweeping victory, pointing out that ten of thirteen claims were dismissed and Lively received nothing in the undisclosed settlement after demanding over $300 million.
  • Lively's legal team fired back, accusing Baldoni's camp of a DARVO strategy — Deny, Attack, Reverse Victim and Offender — and warning that the case could still leave her owing millions in legal fees.
  • The narrow fee award, covering only one claim and a fraction of the litigation timeline, has become a Rorschach test: each side reads into it exactly the confirmation they were already seeking.
  • The deeper question — what actually happened on the set of 'It Ends With Us' — remains unresolved in the public record, even as the legal machinery has largely wound down.

The legal conflict between Blake Lively and Justin Baldoni reached another contested milestone when Judge Lewis J. Liman ruled that Lively could recover some attorney fees tied to defending herself against Baldoni's countersuit — while denying her requests for triple and punitive damages. Both sides immediately declared the outcome a win, revealing just how unsettled the dispute remains even after a private settlement in May 2026.

The conflict had its origins in late 2024, when Lively alleged sexual harassment during the production of 'It Ends With Us' and a coordinated effort to damage her reputation after she raised concerns. Baldoni denied the allegations and, by January 2025, had filed a $400 million countersuit against Lively, her husband Ryan Reynolds, and others, alleging defamation and extortion. He also sued The New York Times over its reporting. Through 2025 and into 2026, courts dismissed or narrowed most of Lively's original thirteen claims, though some retaliation-related claims survived. The parties eventually settled without disclosing terms.

Baldoni's attorney Bryan Freedman framed the fee ruling as confirmation of his client's vindication — noting that Lively had sought over $300 million, lost ten of thirteen claims, and walked away from the settlement with nothing. He characterized her use of a California statute protecting harassment claimants from financial retaliation as an attempted exploit that had ultimately failed.

Lively's team responded by accusing Freedman of employing a DARVO strategy and calling his characterization dishonest. They argued that the very law the judge applied exists to shield good-faith harassment claimants from being financially crushed by litigation — and that Baldoni's position contradicted his own prior statements that Lively's claims deserved to be heard.

What the ruling produced was not resolution but a mirror: each side saw in the judge's narrow decision exactly the story they had been telling all along. The legal record has largely closed, but the question of what truly unfolded on that film set — and whether justice followed — remains open.

The legal battle between Blake Lively and Justin Baldoni reached a new chapter on Friday when a federal judge issued a ruling on attorney fees—a decision that both sides immediately claimed vindicated their position. Judge Lewis J. Liman determined that Lively was entitled to recover some of her legal costs related to defending herself against a countersuit Baldoni had filed, though he rejected her requests for triple damages and punitive awards. It was a narrow victory, and Baldoni's attorney wasted no time framing it as something closer to a complete win.

The dispute had its roots in late 2024, when Lively, Baldoni's co-star in the film "It Ends With Us," filed a complaint alleging sexual harassment during production and a coordinated campaign to damage her reputation after she raised concerns. Baldoni denied everything. By January 2025, he had escalated matters dramatically, filing a $400 million countersuit against Lively, her husband Ryan Reynolds, and others, claiming defamation, extortion, and related violations. He also sued The New York Times over its coverage of the controversy. The legal machinery churned through 2025 and into 2026, with judges dismissing or narrowing many of Lively's original thirteen claims before trial. Some retaliation-related claims survived the culling. In May 2026, the parties settled without disclosing terms.

Baldoni's attorney, Bryan Freedman, issued a statement to Fox News Digital that read less like a measured legal assessment and more like a victory lap. He said Lively had "failed" in her attempt to sue Baldoni, noting that she had demanded over $300 million in fees and damages, lost ten of her thirteen claims, and ultimately received nothing in the settlement itself. Freedman emphasized that the court had thrown out all of her sexual harassment and defamation claims. He characterized Lively's pursuit of attorney fees under California law—a statute designed to protect legitimate harassment claimants from financial retaliation—as an "exploit" and "a fruitless mission." The message was clear: Baldoni's team believed the record vindicated their client entirely.

Lively's legal team responded swiftly with a statement to People magazine, accusing Freedman of deploying what they called a DARVO strategy—Deny, Attack, Reverse Victim and Offender—and calling his statement "a pack of lies." They noted the apparent contradiction in Baldoni's position: weeks earlier, his team had said Lively's claims "deserved to be heard," yet now they seemed to argue that women bringing good-faith harassment allegations should face financial annihilation through litigation costs. Lively's attorneys pointed out that the law the judge applied on Friday exists precisely to prevent that outcome. They suggested the case was heading toward a scenario where Lively would owe millions in legal fees—a prospect they framed as unjust punishment for raising legitimate concerns.

What emerged from the judge's decision was not a clean resolution but a contested interpretation of what the ruling actually meant. Baldoni's team saw vindication in the dismissal of most claims and the settlement that yielded Lively nothing. Lively's team saw vindication in the judge's recognition that she deserved some protection from the financial burden of defending herself. The narrow award of attorney fees—limited to a single claim and covering only months of litigation—became a Rorschach test, each side reading into it confirmation of their narrative. The underlying question remained unresolved in the public record: what actually happened on the set of "It Ends With Us," and whether the legal system had adequately addressed it or failed to do so.

We fought and won against a coordinated effort built on allegations of sexual harassment, retaliation, and a smear campaign that never happened.
— Bryan Freedman, Baldoni's attorney
People who do nothing wrong don't have to pay millions of dollars, which is where this is headed now.
— Lively's legal team
La Conversación del Hearth Otra perspectiva de la historia
Inventor

When a judge awards limited attorney fees to one side in a settlement, what does that actually signal about who won?

Model

It signals that the judge found some merit in at least one of the claims, enough to say the other side should pay for the cost of defending against it. But "limited" is the operative word here—it's not a full vindication of everything that was alleged.

Inventor

So Baldoni's lawyer saying she "failed" because she got nothing in the settlement—is that accurate?

Model

It's one way to read it, but it's incomplete. She lost most of her claims, yes. But the judge also said Baldoni had to pay some of her legal bills, which means the judge found something there worth protecting. The settlement being silent on damages doesn't erase that.

Inventor

Why would Lively's team frame this as a win for harassment victims generally, not just for her?

Model

Because the law the judge applied—the one protecting people from being sued into silence—matters more than any single case outcome. If you can sue someone into bankruptcy just for raising harassment concerns, the law becomes useless. The ruling says that won't happen here, at least not entirely.

Inventor

But ten of thirteen claims were dismissed. Doesn't that suggest her allegations weren't strong?

Model

It suggests the court found legal problems with how they were framed or what they could prove. Dismissal isn't the same as finding nothing happened. It's a procedural outcome, not a factual one.

Inventor

What's left unresolved?

Model

Everything that actually matters to the people involved. We don't know what the settlement terms were. We don't know what either side believes really happened on that film set. We just know the legal system processed it and both sides are claiming victory.

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