A federal judge in New York has thrown out Justin Baldoni’s $400 million countersuit accusing Blake Lively, Ryan Reynolds and publicist Leslie Sloane of defamation and civil extortion, along with a related $250 million claim against The New York Times.
Judge Lewis J. Liman ruled that the statements at the heart of the dispute—sexual-harassment allegations Lively lodged with California’s Civil Rights Department in December 2024—are shielded by law, leaving Baldoni’s complaint “legally insufficient”. The decision, dated 9 June, permits Baldoni to amend narrower claims of contract interference by 23 June but closes the door on defamation against any of the defendants.
Lively’s attorneys Esra Hudson and Mike Gottlieb hailed the ruling as “a total victory and a complete vindication” and signalled plans to seek fees and punitive damages against Baldoni’s Wayfarer Studios for what they call retaliatory litigation.
The Times, whose December report first detailed Lively’s harassment filing, noted that the court confirmed its coverage was protected by the fair-report privilege. Baldoni’s lawyer Bryan Freedman did not respond to multiple requests for comment, though earlier filings described Lively’s motion to dismiss as an abuse of the legal system.
Legal observers point to Judge Liman’s reliance on both New York’s anti-SLAPP statute and the federal Speak Out Act—passed after #MeToo—to protect individuals who report workplace misconduct, marking one of the most high-profile uses of those provisions to date. Loyola Law School professor Jessica Levinson said the opinion “reinforces the idea that you cannot sue someone merely for telling regulators about alleged harassment,” framing the order as a roadmap for future entertainment disputes.
The ruling does not affect Lively’s underlying harassment and retaliation lawsuit, which is set for trial in March 2026 and could see both stars testify about events on the Atlanta set of It Ends With Us, now slated for a late-summer release through Sony Pictures.
While Reynolds has stayed silent publicly, social-media metrics firm SocialContext reported a 30 percent spike in positive sentiment toward the couple after news of the dismissal broke Monday afternoon. Industry analysts say the verdict removes a cloud from the film’s marketing campaign but leaves open the possibility of a retooled complaint if Baldoni amends within the court’s deadline.