Federal Judge Lewis J. Liman has dismissed 10 of 13 claims in Blake Lively‘s lawsuit against Justin Baldoni, including all sexual harassment allegations, leaving only breach of contract and retaliation claims to proceed to trial on May 18.
In a landmark decision on April 2, 2026, Judge Lewis J. Liman of the Southern District of New York dismissed 10 of the 13 claims filed by actress Blake Lively against actor-director Justin Baldoni. The dismissed claims include all sexual harassment allegations, as well as defamation and conspiracy charges People.
Baldoni‘s legal team hailed the ruling as a significant victory. “We’re very pleased the Court dismissed all sexual harassment claims and every claim brought against the individual defendants: Justin Baldoni, Jamey Heath, Steve Sarowitz, Melissa Nathan, and Jennifer Abel,” stated attorneys Alexandra Shapiro and Jonathan Bach. “What’s left is a significantly narrowed case, and we look forward to presenting our defense to the remaining claims in court.”
The remaining claims are a breach of contract allegation and a FEHA (Fair Employment and Housing Act) retaliation claim against Wayfarer Studios, Baldoni‘s production company. These will proceed to trial, scheduled to begin on May 18 in New York People.
Lively‘s legal team offered a different perspective. Attorney Sigrid McCawley emphasized that the sexual harassment claim was dismissed not because the court found no misconduct, but because Lively was deemed an independent contractor, not an employee, which limits the scope of harassment claims under employment law People.
This distinction is legally crucial. As an independent contractor, Lively cannot pursue certain harassment claims that would be available to an employee, but the court did not rule on the factual basis of the alleged harassment. The remaining contract and retaliation claims focus on business disputes and alleged retaliatory actions following her complaint.
The legal battle stems from the production of the 2024 film It Ends with Us, adapted from Colleen Hoover‘s bestselling novel. The conflict became public in December 2024 when Lively filed a sexual-harassment complaint against Baldoni, alleging on-set misconduct and a subsequent smear campaign People.
Baldoni denied the allegations and filed counterclaims for extortion and defamation against Lively and her husband, Ryan Reynolds. However, those counterclaims were dismissed by Judge Liman in June 2025, and Baldoni‘s team opted not to refile People.
In an attempt to resolve the dispute, the court mandated a settlement conference on February 11, 2026, but it ended without agreement. Both sides have indicated their intention to testify at the upcoming trial People.
For the entertainment industry, this case highlights the complexities of employment status on film sets. The independent contractor ruling could set a precedent for how harassment claims are handled in the gig economy of Hollywood. Meanwhile, the remaining claims against Wayfarer Studios may scrutinize the business practices of production companies in managing star conflicts.
As the May trial approaches, all eyes are on Justin Baldoni and Blake Lively. While the dismissal of harassment claims is a win for Baldoni, the lawsuit is not over. The breach of contract and retaliation claims still pose significant legal and reputational risks for both parties.
The saga of It Ends with Us has transcended the film itself, becoming a case study in celebrity legal warfare. Fans of the book and film have followed every twist, and the trial’s outcome will likely influence future projects involving the two stars. For now, the narrowed case promises a focused but no less contentious courtroom battle.
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