What Really Happened With the Blake Lively and Justin Baldoni Lawsuit

Hollywood thrives on secrets, but some feuds are just too loud to stay behind closed doors. You’ve probably seen the headlines. The "It Ends With Us" press tour was weird. Blake Lively was on one side, Justin Baldoni was on the other, and the internet was basically a digital Colosseum. But by early 2026, the drama shifted from awkward red carpet snubs to a high-stakes legal war that has redefined "creative differences."

Honestly, it’s a mess.

What started as whispers about "fat-shaming" and creative control exploded into a federal lawsuit involving allegations of sexual harassment, smear campaigns, and even a $400 million countersuit that dragged Ryan Reynolds into the fray. If you're looking for a simple story of a director and an actress who didn't get along, you’re in the wrong place. This is about power, reputation, and a penthouse office nicknamed "Buckingham Palace."

The Legal Timeline: From Rumors to Courtrooms

The fallout didn't happen overnight. It was a slow burn.

In December 2024, Blake Lively threw the first official punch. She filed a lawsuit against Justin Baldoni, his production company Wayfarer Studios, and producer Jamey Heath. The charges? Sexual harassment, retaliation, and creating a hostile work environment. She claimed Baldoni made inappropriate comments about her body and pressured her to reveal intimate details about her personal life.

Baldoni didn't stay quiet.

💡 You might also like: Is Randy Parton Still Alive? What Really Happened to Dolly’s Brother

By January 2025, he fired back with a massive $400 million countersuit. He accused Lively and her husband, Ryan Reynolds, of civil extortion and defamation. His argument was pretty blunt: he claimed Lively "hijacked" the film, used her star power to push him out of the editing room, and then fabricated harassment claims to "bury" him when the public started turning on her during the press tour.

Key Dates in the Case

• December 2024: Lively files her initial harassment lawsuit.
• January 2025: Baldoni countersues Lively and Reynolds for $400 million.
• June 2025: A judge dismisses Baldoni’s countersuit, ruling that allegations made in a lawsuit (Lively’s) are exempt from libel claims.
• October 2025: Baldoni sits for a grueling nine-hour deposition in Los Angeles.
• January 2026: New unsealed texts reveal Baldoni’s fears of a "trap" during filming.
• May 2026: The official trial date for Lively v. Baldoni.

The "Buckingham Palace" Revelations

During his October 2025 deposition, Baldoni dropped a detail that went viral instantly. He claimed that Lively insisted all their production meetings take place at her Manhattan penthouse.

She reportedly called her home office "Buckingham Palace."

Why does a nickname matter? In court, it's about the power dynamic. Baldoni’s team used this to argue that Lively was the one in control, demanding he come to her territory. He described a meeting in April 2023 where Ryan Reynolds supposedly "unloaded" on him, berating him for asking about Lively’s weight—an incident Baldoni claims left him in tears.

Interestingly, unsealed emails suggest Taylor Swift and Hugh Jackman might have been present for parts of these penthouse gatherings. Talk about a high-profile witness list.

📖 Related: Patricia Neal and Gary Cooper: The Affair That Nearly Broke Hollywood

"Setting Me Up for a Trap"

The most recent bombshell came in January 2026. Unsealed text messages from December 2023 show Baldoni venting to his agent at WME. He was spiraling.

"She’s refused a body double," one text read. Baldoni claimed Lively was rejecting his storyboards for intimate scenes and insisting on keeping clothes on for moments that were explicit in the book. He told his agent this was "setting me up for a trap." He felt that no matter what he did as a director, Lively was positioning him to look like the villain.

Lively’s side tells a different story.

Her legal team argues these texts were sent after she had already raised concerns about his behavior. They basically call it "DARVO"—Deny, Attack, and Reverse Victim and Offender. They claim Baldoni was the one creating the "toxic" atmosphere by showing nude videos to staff and discussing his own "pornography addiction" on set.

Why the Trial Still Matters

This isn't just celebrity gossip. It’s a landmark case for Hollywood. It asks a difficult question: Where is the line between a producer/actor exercising creative "rights" and a director being "harassed" out of their own project?

👉 See also: What Really Happened With the Death of John Candy: A Legacy of Laughter and Heartbreak

Or, conversely, when does a director’s behavior cross from "difficult" to "legally actionable harassment"?

The court dismissed Baldoni’s $400 million defamation claim against the couple in June 2025, which was a huge win for Team Lively. The judge ruled that Baldoni couldn't prove extortion under California law just because Lively threatened to stop promoting the movie. But the harassment case against Baldoni and Wayfarer Studios is still very much alive.

What to Watch for in May 2026

1. The Witnesses: Will Ryan Reynolds actually take the stand? He wasn't deposed, but his presence looms large.
2. The "Lost" Footage: Both sides claim to have video from the set that proves their version of the "hostile environment."
3. The PR Machine: Evidence of "coordinated smear campaigns" could lead to massive punitive damages if either side can prove the other planted stories in the press.

Actionable Insights for the Public

Following a case like this requires a bit of media literacy. It’s easy to pick a side based on a TikTok edit, but the legal reality is much more clinical.

• Check the Source: Much of the "information" circulating is from unsealed depositions. These are one-sided testimonies, not established facts.
• Understand "Litigation Privilege": In many states, you can’t be sued for what you say in a legal complaint. This is why Baldoni's first defamation suit was tossed—the law protects the right to file a lawsuit without being immediately sued back for what’s written inside it.
• Look at the Contracts: Usually, these battles end in a settlement. If this actually goes to a jury in May, it means both sides are so convinced of their "truth" (or so worried about their brand) that they are willing to risk everything.

The "It Ends With Us" saga is a reminder that behind every "perfect" Hollywood production, there might be a "Buckingham Palace" where the real story is being written in legalese. Keep an eye on the May 18 trial date. That’s when the talking stops and the evidence finally has to speak for itself.

Next Steps for Staying Informed

To get the full picture as the trial approaches, you can track the official court filings via the New York Southern District Court (SDNY) electronic records. Search for "Lively v. Wayfarer Studios" to see the latest motions. Additionally, reviewing the original 179-page complaint filed by Baldoni provides a deeper look at the specific contract disputes that led to the "creative hijacking" allegations.