Blake Lively Faces 'Fatal Damage' to Case, May Seek Exit Strategy, Lawyers Predict

Blake Lively may have scored a partial legal win this week, but experts say the courtroom drama with Justin Baldoni is far from over, and the actress might already be eyeing a quiet exit from the case.
The "Gossip Girl" alum, whose harassment lawsuit was filed against her "It Ends With Us" co-star and director in December, accuses Baldoni of creating a hostile work environment and starting a smear campaign against her. However, as the legal battle unfolded, things became more complicated and risky for both sides.
Veteran Los Angeles attorney Omar Serrato told the Daily Mail the fallout is still unfolding. "I don't think this will be over any time soon," Serrato said. "I think we have a long way to go."
On Monday, U.S. District Judge Lewis J. Liman dismissed Baldoni's $400 million defamation countersuit against Lively and her camp, which included her husband Ryan Reynolds, publicist Leslie Sloan, and the New York Times. The judge ruled the defamation and extortion claims lacked sufficient evidence and barred them from being refiled.
Although the ruling initially appeared to favor Lively, Serrato cautioned that Baldoni could appeal. "It certainly feels like it may be in danger of appellate review," he said, adding that judges typically reserve such decisions until the end of the discovery process.
Remaining allegations of tortious interference and breach of contract were also dismissed, but Baldoni has the option to revise and refile those claims.
Yet Lively's case isn't immune to scrutiny. Legal experts argue that emails and messages exchanged between the actress and Baldoni cast doubt on her allegations.
One May 2023 email from Lively to Baldoni read, "I'm grateful for all we've built so far. Thank you for caring so much and for putting every bit of you into showing it." In another exchange, Baldoni complimented her performance on set. "You were amazing today," he texted. Lively responded, "You were terrific. I'm proud of everything we did today, but really every day."
Celebrity attorney Christopher Melcher said such messages, along with newly released audio recordings, could severely weaken Lively's case. "Because of that decision, the judge said she cannot put on evidence of emotional distress, which is the main component of her claim," he said, referring to her withdrawal of emotional distress charges after being asked to submit medical records.
Despite Judge Liman's ruling, Baldoni's legal team dismissed the idea that Lively had emerged victorious. "Her allegations are no truer today than they were yesterday," said attorney Bryan Freedman, who added the case was "still alive."
While the decision reportedly disheartened Baldoni, a source close to the actor told the Daily Mail he remains committed to pursuing his claims and is "looking to figure out how to move forward from this current setback."
Still, Melcher believes the damage may already be done for both parties.
"Both of them have just really destroyed each other in this court proceeding and have accomplished nothing, other than harming themselves," he said. "They have inflicted damaging wounds against the other. The only thing they have to show for it are big legal bills."
A judge has dismissed Justin Baldoni’s $400 million defamation lawsuit against Blake Lively and Ryan Reynolds.
— Pop Base (@PopBase) June 9, 2025
The judge, Lewis J. Liman, found that her accusations of sexual harassment were legally protected and therefore immune from suit. pic.twitter.com/e9blC7MBI8
Read more: Justin Baldoni 'Devastated' After Judge Tosses $400M Lawsuit: 'It Is a Tale of Two Worlds Right Now'
Exit Strategy in Sight?
Melcher suspects Lively may now be seeking a graceful way out. The court's decision not to allow her emotional distress claims leaves her with a significantly weaker case.
"She cannot put on evidence of emotional distress," he noted, "which is the main component of her claim."
Melcher also pointed out that Judge Liman may have indirectly encouraged both parties to reach a settlement. A provisional trial date is set for March 2026, but the legal expert doubts the case will ever get that far. "I see no realistic chance that this case will ever go to trial," he said.
According to Melcher, Lively may attempt to end the legal fight by declaring a partial victory and shifting the focus to public opinion. "She can now try to build her own narrative... with publicists, rather than doing it in a courtroom where she's subject to scrutiny," he explained.
For Lively, that might be the cleanest path forward. "When she kicked this off, she put on the mantle of a victim very well," Melcher said. "But when Justin fought back, it looked like Blake was really the aggressor, and she came out looking horrific."
Now, he says, she has a way to "claim victory and get out of the case."