Justin Baldoni's $400 Million Lawsuit Against Blake Lively and Ryan Reynolds Officially Dismissed

The long-running legal battle between actor/director Justin Baldoni and Hollywood power couple Blake Lively and Ryan Reynolds has finally reached its conclusion. A U.S. federal judge has formally dismissed Baldoni's $400 million extortion and defamation suit after he missed a critical court deadline to amend his claims.

According to court documents filed in the Southern District of New York, the dismissal order was signed on October 31, 2025, by Judge Lewis Liman. A final ruling noted that Baldoni and his production company, Wayfarer Studios, did not respond to an earlier court request that asked them to state why a final judgment should not be entered in this case. Once they failed to meet that October 17 deadline, the court moved to close the case.


The decision officially closes one of the most publicized Hollywood legal battles of the year, following a huge setback for Baldoni, who was hoping to revive his claims after an earlier dismissal in June 2025. During that period, Judge Liman threw out the initial lawsuit as unable to show that Baldoni's defamation allegations were legally sufficient. The court found many of the statements he cited were either protected by litigation privilege since they were made in the course of legal proceedings or by journalistic privilege since they came from a New York Times investigation.

Background of the Dispute

The highly publicized conflict began in January 2025, when Justin Baldoni launched a $400 million lawsuit against Blake Lively, Ryan Reynolds, and The New York Times. He accused them of defamation and extortion, claiming they had all conspired to damage his career and reputation in the wake of allegations by Lively.

The suit comes just weeks after Blake Lively filed her own legal complaint against Mr Baldoni and his company, Wayfarer Studios, for sexual harassment and workplace retaliation on the set of the movie It Ends With Us, directed by Mr Baldoni and starring Ms Lively. In that lawsuit, she alleged that he acted inappropriately on set and made her work environment uncomfortable.

According to court filings by Lively, one of the most disturbing incidents reportedly occurred during production when Baldoni approached her inappropriately. The complaint described how he reportedly leaned in close, dragged his lips along her neck, and made remarks about her scent. Lively also alleged that Baldoni pushed for explicit scenes in the film and commented about her marriage to Ryan Reynolds.

Baldoni strongly denied these, saying the assertions were fabricated to destroy his good name. In a lawsuit, he accused Lively and Reynolds of organizing a smear campaign against him, claiming that the accusations had cost him professional opportunities and emotionally harmed him.

The Legal Developments

The case was filled with headline names and serious accusations, but it quickly began to fall apart in court. Judge Liman’s initial ruling back in June dismissed the complaint on the basis that Baldoni failed to show actual malice or deliberate intent to harm. The court further noted that the statements at issue were privileged because they arose out of proper proceedings and responsible journalism.

After being afforded the opportunity to amend the complaints and supplement the record, plaintiff failed to file anything within the designated timeframe; thus, the district court held that plaintiffs had abandoned their attempt to reinstate the action.

In an order filed on October 31, the judge said both Baldoni and Wayfarer Studios “failed to respond” and thus “the case is dismissed with prejudice,” meaning it cannot be refiled on the same grounds.

What Happens Next

Although this decision brings the claims of defamation and extortion to a formal end, the litigation may well not be over. According to reports, Blake Lively has asked that her legal fees be reimbursed on grounds that the case against her was frivolous and entailed unnecessary expenses. The court is expected to rule on that request in the coming weeks.

Theoretically, Baldoni still could appeal the dismissal, but lawyers said he would have little recourse with the procedural nature of the ruling and having failed to meet the court's deadline. For now, the dismissal stands as a significant turning point in the highly publicized legal feud.

The Broader Impact.

The Baldoni-Lively clash has received widespread attention because it involves two of Hollywood's biggest stars, who recently collaborated on one of the biggest films. An adaptation of the bestseller by Colleen Hoover, It Ends With Us was supposed to be a career high for the two, but their partnership quickly fell apart amidst the allegations and legal battles.

For Lively, the dismissal means a vindication of her legal standpoint, and her concentration seems now to shift to moving forward with future projects. For Baldoni, however, it is another professional and personal setback in the face of ongoing scrutiny in the entertainment industry.

Though the case was dismissed, the controversy has generated larger conversations about workplace behavior in Hollywood, accountability for public accusations, and the reputational risks that come along with highly publicized lawsuits. Now that the court has closed this chapter, both sides face the uphill battle of rebuilding their public images in the wake of a bitter and costly fight.

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