Justin Baldoni suffered a significant legal blow this week after a federal judge dismissed the majority of his $400 million lawsuit against actress Blake Lively. The ruling effectively ends his defamation and civil extortion claims, with legal experts calling it a "devastating" outcome.

"This is a devastating result for Baldoni, and it's really actually a surprising result because the court did something fairly unusual in these kinds of business dispute and defamation cases," attorney Seth Berenzweig told Daily Mail. Berenzweig, who is not involved in the case, stated that the core claims in Baldoni's complaint have now been removed.

"The main guts of the case are dead," he said. "He threw out the extortion and defamation claims and he gave leave for Baldoni by the 23rd of this month to file amended claims for breach of implied contract and tortious interference with contract."

Baldoni's attorney, Bryan Freedman, maintained that his client still has legal avenues available, claiming they may pursue up to four additional claims. However, Lively's legal team has disputed that assertion. The judge's ruling allows amendments solely for breach of implied covenant and tortious interference claims.

Berenzweig believes Baldoni won't abandon the fight, especially with a looming deadline.

"I believe Baldoni will try and come back and refile amended claims for his breach of implied contract and tortious interference with contract," he said. "He'll probably come back on that, by not later than the 23rd, because he definitely doesn't want to give up the fight."

"If he walks away from those claims, then his entire case is sunk and then he'll be in default because he would miss that deadline," Berenzweig added. "He's still defending the claims that Lively is asserting against him that are going to be going to trial next year. So I doubt that he's going to want to give up whatever little leverage he has left."

Berenzweig also highlighted the reputational damage both parties have endured, calling it "pretty catastrophic."

Dismissal Based on Legal Protections

Attorney Michelle O'Neil stated that the judge's decision was based on legal immunity protections, not disputed facts.

"Bottom line: this is a decision on the law not the facts," O'Neil told the Daily Mail. "No matter the opinion of the facts, the judge said the law doesn't make an actionable claim out of those facts so you don't have a case."

According to O'Neil, Lively's defamation claims were protected as part of legal filings. "When a person files a complaint with the government about a civil rights claim – here a sexual rights violation – that complaint is immune from suit and even if the report is leaked to the media, reporting about it is still protected," she said.

"Baldoni's suit is still gasping for air since the judge gave him until June 23rd to amend his contractual claims," she added. "However, the extortion claim... and the defamation claim are gone because under the law Baldoni wholly failed to state any claim that rises to the level of actionable under the law."

Public Battle Continues

Ethan Krasnoo, a partner at Reavis Page Jump LLP, noted that Baldoni could still seek to shape public opinion as his legal strategy weakens.

"Baldoni can refile an amended version of his complaint, but only for two of his claims: tortious interference and breach of implied covenant of good faith and fair dealing," Krasnoo said. "The judge did not authorize Baldoni to file any of his other claims again... ruling that doing so would be futile."

"It is likely that Baldoni will file his remaining claims again to maintain any minimum settlement advantage he may have left, although the bulk of his claims and alleged damages have been thrown out," he said. "Baldoni's loss of the affirmative suit does not mean that he cannot prevail as a defendant in Lively's counterclaims against him."

The court dismissed Baldoni's lawsuit against not only Lively but also her husband, Ryan Reynolds, publicist Leslie Sloane, and The New York Times. Judge Lewis J. Liman stated that Lively's claims were filed in legal documents protected under litigation privilege.

"The Wayfarer Parties have not alleged that Lively is responsible for any statements other than the statements in her CRD complaint, which are privileged," the judge wrote in his opinion.

The legal feud began in December 2024 after Lively accused Baldoni of sexual harassment and retaliation. He denied the allegations and subsequently filed a lawsuit against Lively, Reynolds, and others for defamation, civil extortion, and other claims.

Baldoni also launched a $250 million defamation case against The New York Times after the publication reported on Lively's allegations.

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Blake Lively