A federal judge in Manhattan awarded actor Blake Lively $407,000 on Wednesday to cover legal fees and costs following a defamation lawsuit filed by fellow actor Justin Baldoni. The award, authorized by U.S. District Judge Lewis Liman, represents approximately 5% of the $8.04 million Lively had originally requested for her defense in the legal dispute related to the film "It Ends With Us."
The legal conflict began in December 2024 when Lively sued Baldoni and his production company, Wayfarer Studios, alleging sexual harassment and retaliation. Baldoni filed a countersuit for defamation in January 2025, which he denied. In April 2026, Judge Liman dismissed Lively's harassment claims and all claims specifically against Baldoni, though he allowed her to pursue retaliation claims against Wayfarer Studios. The primary lawsuit was settled in May 2026, at which time Lively received no monetary payment.
In his ruling on the legal fees, Judge Liman stated that while the case was "extremely well-litigated" and billing rates exceeding $2,000 per hour were "not unreasonable," the total amount sought by Lively was not sufficiently justified. The judge limited the recovery to costs directly related to defending against the defamation claim, excluding expenses for media relations and a motion for sanctions.
For the broader legal community and future litigants in California and New York, the ruling interprets a 2023 California law designed to protect sexual harassment accusers from retaliatory defamation suits. Lively’s lawyers, Michael Gottlieb and Esra Hudson, described the award as a "historic" application of this law, stating it demonstrates "real consequences" for bringing such lawsuits. Conversely, Baldoni’s lawyer, Bryan Freedman, stated the ruling was a victory that prevents the courtroom from being used for personal gain.
The decision sets a precedent for how much "accountability" costs under this specific California statute, translating to a six-figure penalty rather than the multi-million dollar recovery requested by the defense. As both parties previously agreed not to appeal Judge Liman's decision on fees, this award concludes the financial aspect of the defamation defense. The effective date of the award is August 26, 2026, the date of the judge's order. While the defamation and harassment claims are now settled, the ruling provides a baseline for how costs are apportioned in future cases involving similar retaliatory claims.