A filing confirmed Lively received no settlement payout, but a judge must decide whether she can recover fees or damages under a California anti-retaliation law
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NEED TO KNOW
- Blake Lively did not receive money in her settlement with Wayfarer after originally suing for $300 million per a motion filed by Wayfarer
- A source close to Lively tells PEOPLE “this was never about money,” saying her focus was on “exposing bad actors who are also harming others”
- Lively could still recover attorneys’ fees or damages, as her pending California legal motion remains unresolved despite the settlement
Although Blake Lively appears to have received no financial payout in her settlement with Justin Baldoni’s Wayfarer parties, the legal battle between the two sides may not be over just yet.
In a May 8 court filing, attorneys for Wayfarer argued that Lively, 38, “dismissed her three remaining claims without the Wayfarer Defendants paying a cent,” despite originally seeking $300 million in damages.
But a source close to Lively tells PEOPLE, “For Blake Lively, this was never about money — it was about exposing bad actors who are also harming others.”
“She didn’t settle her claims until the documents exposing the bad actors behind smear campaigns were made public — documents that have led to other lawsuits and investigations,” the source added. “With this motion, she is breathing life into a groundbreaking statute designed to protect survivors from retaliatory lawsuits.”
Lively and Baldoni, 42, reached a settlement earlier this month, avoiding a trial scheduled to begin May 18 in New York City.
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As part of the agreement, the two sides issued a rare joint statement on May 4 reflecting on their work on It Ends With Us.
“The end product — the movie It Ends With Us — is a source of pride to all of us who worked to bring it to life,” the statement read. “Raising awareness, and making a meaningful impact in the lives of domestic violence survivors — and all survivors — is a goal that we stand behind.”
The latest developments follow months of legal and public fallout stemming from allegations first made by Lively in December 2024. The actress accused Baldoni, her It Ends With Us director and costar, of sexual harassment and claimed he and his associates orchestrated a smear campaign against her after she raised concerns about on-set conduct. Baldoni denied the allegations.
Before the settlement, U.S. District Judge Lewis Liman dismissed several claims in the broader litigation, including sexual harassment and defamation claims, while allowing retaliation-related allegations to proceed.
Still, one issue remains unresolved: whether Lively can recover attorneys’ fees or damages under California Civil Code Section 47.1, a law meant to protect people who report alleged sexual harassment, discrimination or retaliation from retaliatory defamation lawsuits.
That issue stems from Baldoni’s now-dismissed defamation $400 million countersuit against Lively, along with related claims brought by Wayfarer Studios, CEO Jamey Heath, publicist Jennifer Abel, financier Steve Sarowitz and crisis PR specialist Melissa Nathan.
On May 7, Lively’s attorneys Michael Gottlieb and Esra Hudson called the settlement “a resounding victory.”
“By agreeing to this settlement, and waiving their right to appeal, Justin Baldoni and every individual defendant now face personal liability for abusing the legal system to silence and intimidate Ms. Lively,” her attorneys said in a statement to PEOPLE.
Bryan Freedman, who represents Baldoni and Wayfarer, framed the outcome differently.
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“Let’s be clear, this is a win and total victory for the Wayfarer parties," Freedman said in a statement May 7 statement. "The court had already dismissed 10 of Ms. Lively’s 13 claims, including every sexual harassment claim, every defamation claim, and all claims against the individual defendants. Ms. Lively voluntarily dismissed the rest. In our view, they settled because they knew they were going to lose in court. All that remains is a pending request for fees based on a very narrow issue that has been with the court since September 2025.”
The judge has not yet ruled on whether Lively can recover fees or damages under the California statute. Baldoni’s legal team argued in a May 8 filing that those protections should not apply because many of the alleged incidents connected to It Ends With Us occurred in New Jersey, where much of the film was shot.
Wayfarer’s attorneys also argued there is no need for further proceedings because Lively had already asked Liman to resolve the issue before trial. “Simply put,” the attorneys wrote in the filing, “Plaintiff does not explain how her right to relief under Section 47.1 could be affected by subsequent rulings.”
Last week, Liman signaled he did not need additional briefing on the issue at that time.
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