Justin Baldoni's $400 Million Lawsuit Against Blake Lively Dismissed After Missed Court Deadline

In a dramatic turn of events in one of Hollywood's most closely watched legal battles, actor-director Justin Baldoni has seen his $400 million defamation and extortion lawsuit against actress Blake Lively (and her husband Ryan Reynolds) and several others officially closed by a federal judge. The case originated late last year, but after several rounds of filings, dismissals, and court orders, the matter was finally decided when Baldoni's team failed to meet a crucial deadline of 17th October, 2025, to revise their lawsuit. 

Even though Lively's own separate lawsuit against Baldoni is still pending and scheduled for trial in March 2026, U.S. District Judge Lewis J. Liman's decision to dismiss the case represents a significant win for Lively and her legal team.

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Roots of the Legal War–From On-Set Allegations to Countersuits

The dispute began in December 2024 when Blake Lively filed a complaint with the California Civil Rights Department, accusing Justin Baldoni—who directed and co-starred alongside her in the 2024 film 'It Ends With Us'—of sexual harassment, retaliation and creating a hostile work environment. When Baldoni's production company, Wayfarer Studios, retaliated by suing Lively, Reynolds, their publicist, and even The New York Times for $400 million in extortion and slander, the dispute swiftly got out of hand. 

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The case remained contentious through early 2025, with Judge Liman dismissing the countersuit in June on grounds that Lively's statements were legally confidential as part of a protected proceeding. 

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Deadline Missed, Case Closed

The downfall of Baldoni's countersuit largely came down to procedural missteps and missed opportunities. Baldoni was given opportunity to revise his claims by 23rd June after Judge Lewis J. Liman dismissed his initial $400 million defamation and extortion complaint in June 2025, but his legal team never did so. The court then issued another order in October demanding that Baldoni should provide an explanation for why the case shouldn't be dismissed outright. Once again, no response came before the 17th October deadline. 

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As a result, the judge dismissed the lawsuit entirely in a final judgment on 31st October. According to the court filing, only Lively's legal team responded, requesting that her right to pursue attorney's fees be preserved—a request the court approved. This official closure leaves Baldoni's once-headline-grabbing suit dead in the water unless he attempts a future appeal after fee motions are finalized. 

The lack of action, according to legal experts, indicates a likely purposeful retreat rather than an oversight, indicating that Baldoni's staff may be refocusing their efforts to defend against Lively's persistent allegations of harassment and retaliation. However, for Lively, the judgment represents not just a procedural win, but also a powerful vindication after months of public speculation.

What Comes Next–Lively's Suit Still On

While Baldoni's case has been officially shut down, the legal saga between the 'It Ends With Us' co-stars is far from over. Blake Lively's own lawsuit, filed in California in 2024, continues to move forward. In her lawsuit, Lively has charged Baldoni with emotional abuse, sexual harassment, and creating a hostile work environment while they were making their movie based on Colleen Hoover's best-selling book. 

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The actress also claims that she was subjected to reprisals after voicing her concerns, which led her to pursue damages for emotional distress and breach of contract. The case is scheduled for trial on 9th March, 2026, and is expected to feature testimony from several cast and crew members from the film. Insiders close to the situation say that Lively now feels "vindicated and relieved" following the dismissal of Baldoni's countersuit, which she viewed as an attempt to discredit her allegations.

With this major hurdle out of the way, her legal team is reportedly preparing for an aggressive discovery phase ahead of the 2026 court date. 

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