In a major courtroom twist that sent shockwaves through Hollywood, a federal judge has dismissed Justin Baldoni's $400 million countersuit against Blake Lively, calling his claims legally insufficient—but left the door open for the It Ends With Us director to try again.

Judge Lewis J. Liman tossed out Baldoni's defamation and conspiracy claims, ruling that Lively's statements in her 2024 civil rights complaint were protected under litigation privilege. The court also found that Baldoni failed to prove any of the other defendants—including Ryan Reynolds, Lively's longtime publicist Leslie Sloane, and The New York Times knowingly spread false information about him.

But Baldoni, 40, isn't out of legal options just yet. The judge gave him until June 23 to file an amended complaint, specifically on two narrower claims: breach of the implied covenant of good faith and fair dealing, and tortious interference with contract. These potential angles shift the case from a public mudslinging match to a more technical dispute over business relationships gone sour.

What the Dismissal Means

The lawsuit stemmed from a stormy behind-the-scenes fallout during the making of It Ends With Us, the film adaptation of Colleen Hoover's best-selling novel. After Lively filed a civil rights complaint accusing Baldoni of creating a toxic work environment, the director and Jane the Virgin star retaliated with a countersuit alleging defamation, reputational damage, and a plot to sabotage the film's release.

Liman rejected those arguments, writing that "none of the alleged defamatory statements give rise to liability" and that Baldoni "failed to allege facts showing actual malice."

"Today's opinion is a total victory and a complete vindication for Blake Lively, along with those that Justin Baldoni and the Wayfarer Parties dragged into their retaliatory lawsuit, including Ryan Reynolds, Leslie Sloane and The New York Times," Lively's lawyers said in a statement published by Variety.

"As we have said from day one, this '$400 million' lawsuit was a sham, and the Court saw right through it. We look forward to the next round, which is seeking attorneys' fees, treble damages and punitive damages against Baldoni, Sarowitz, Nathan, and the other Wayfarer Parties who perpetrated this abusive litigation."

But what seemed like a total legal defeat might instead be a strategic pause.

"The court has not closed the book," said legal analyst Carla Mendes to ENSTARZ. "He has 16 days to rewrite the narrative and present it under a more defensible legal theory."

If Baldoni's team files an amended complaint by the June 23 deadline, the judge could allow discovery to begin. That would mean subpoenas, internal emails, and depositions — potentially explosive in a case involving A-listers and a project as high-profile as It Ends With Us.

The two remaining legal avenues—tortious interference and breach of good faith—would require Baldoni to prove that Lively or her associates deliberately undermined contractual obligations or interfered with existing business relationships.

That's a high bar to clear, but not impossible, particularly if Baldoni can tie alleged off-screen conflict to quantifiable losses in distribution, promotion, or reputation.

What Comes Next?

While Lively's team has called the countersuit "abusive litigation" and is expected to pursue legal fees, Baldoni now has a crucial decision to make: either walk away quietly or reignite the case in two weeks with a more targeted complaint.

Hollywood will be watching. So will press freedom advocates and civil rights groups, since the outcome could influence how creative differences—especially those involving gender and power—are handled in the courtroom and the industry at large.

For now, Blake Lively walks away with a decisive win. But for Justin Baldoni, the clock is ticking—and he still has one more shot to make his case.

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