The legal fight between Justin Baldoni and Blake Lively took another sharp turn this week, with Baldoni’s legal team arguing in court that Lively’s reported career setbacks are tied to her public image—not any alleged smear campaign.
Per Reuters, during a pre-trial hearing ahead of their May 18 court date, attorneys for Baldoni’s company, Wayfarer Studios, pushed back on claims that Lively lost major earnings due to retaliation. Instead, they pointed to what they described as a pattern of behavior and business struggles that they say contributed to her declining opportunities.
The attorneys also pointed to prior controversies and business setbacks that they argued damaged Lively’s reputation independently of the lawsuit.
Baldoni’s legal team also challenged the scale of Lively’s financial claims. Lively is seeking up to $300 million in damages, with expert estimates discussed in court including as much as $230 million in lost earnings and profits, plus at least $40 million tied to reputational harm.
In response, Baldoni’s attorney Amir Kaltgrad argued that the projection doesn’t align with her recent work history, describing it in court as “scattered” and suggesting she has not consistently worked at a level that would support that figure.
The defense also referenced specific moments that drew public attention, including Lively’s social media post during the 2024 photo-editing controversy involving Kate Middleton. Lively later apologized for the post, calling it “a silly post around the ‘photoshop fails’ frenzy” and saying she was “mortified” after the broader context became clear.
Baldoni’s attorneys cited the incident as part of a broader argument about reputational impact arising outside the lawsuit.
These arguments arrive just weeks after a significant ruling in the case. Earlier this month, Judge Lewis J. Liman dismissed 10 of the 13 claims Lively filed against Baldoni, including allegations of sexual harassment and defamation. The remaining claims—focused on retaliation, breach of contract, and related issues—are still set to be heard at trial.
Lively’s legal team has maintained that the case is now centered on what happened after she raised concerns during the production of It Ends with Us. Her attorney, Sigrid McCawley, said outside court that Lively is “expecting to take the stand” and is focused on telling her version of events.
“Blake’s hope is to be able to have her voice heard in that courtroom,” McCawley said.
The dispute traces back to late 2024, when Lively sued Baldoni over alleged misconduct during filming and claimed she faced retaliation after speaking up. Baldoni denied those allegations and previously filed a $400 million countersuit against Lively and her husband, Ryan Reynolds, which was dismissed in 2025.