New York — A judge has thrown out a $400 million defamation lawsuit filed by Justin Baldoni against former co-star Blake Lively, marking a crucial turning point in their ongoing legal conflict. The dispute stems from allegations made on both sides during the production of the 2024 film “It Ends with Us.”

On Monday, Judge Lewis Liman dismissed Baldoni’s countersuit, which included claims of defamation, extortion, and various other accusations. This lawsuit was a response to Lively’s earlier allegations, which included claims of sexual harassment and retaliation linked to her reports of misconduct on set.

Lively’s legal action, initiated in December 2024, claimed she experienced harassment while working with Baldoni and alleged that he retaliated against her after she raised her concerns. Details of her allegations were also publicized in an article by the New York Times prior to her formal complaint.

In his countersuit, Baldoni accused Lively, her husband Ryan Reynolds, their publicist, and the New York Times of attempting to destroy his career through a series of damaging claims. He argued that Lively threatened not to promote the film and in so doing “stole the film” from him and his production company, Wayfarer Studios. Judge Liman noted that Baldoni did not adequately demonstrate that Lively’s alleged threats constituted wrongful extortion rather than lawful negotiations.

Furthermore, the judge indicated that Baldoni failed to substantiate his claims of defamation, as the statements made by Lively in her lawsuit are considered privileged. Liman also found that the New York Times acted without malice when it published its story, stating there was no clear motive for the publication to favor Lively’s version of events.

In response to the dismissal, Lively’s legal team expressed satisfaction with the ruling, labeling it a “total victory” for their client and others involved in the case. They referred to Baldoni’s suit as a “sham” and emphasized the critical nature of the court’s dismissal.

Although this particular lawsuit has been dismissed, Baldoni retains the option to amend and refile certain allegations pertaining to contract interference, with a deadline set for June 23. This allows him a chance to refine his arguments moving forward.

The ongoing legal battles reflect a broader trend in Hollywood where issues of misconduct and retaliation are increasingly coming to the forefront, shaping the landscape both on and off the screen. This case, in particular, underscores the complexities of workplace relationships within the entertainment industry and the serious implications that legal disputes can have on careers and reputations.