A California court has ordered Justin Baldoni to pay Blake Lively's legal fees after the pair settled their dispute over the film "It Ends With Us." The ruling, handed down on Friday, June 12, by Judge Lewis J. Liman, found that Lively was entitled to recover her defense costs under a 2023 California law meant to protect sexual abuse accusers from retaliatory defamation suits.

According to court documents obtained by Us Weekly, Liman wrote that "the Court concludes that, on this record, the Wayfarer Parties have failed to carry their burden of demonstrating that the Section 47.1 privilege does not apply, and Lively is therefore entitled to fees and costs." The judge also denied Lively's request for triple damages and punitive damages, finding that those remedies are not available under federal law.

Lively's attorneys, Esra Hudson and Michael Gottlieb, reacted to the news with a statement praising the court's decision. "Today's ruling makes it clear that Ms. Lively brought her claims in good faith, that there was no evidence she acted with malice and that she is the prevailing defendant under Section 47.1," they said. "The Court is awarding Ms. Lively attorneys' fees and costs and has explained that a prevailing defendant under Section 47.1 may seek damages using different procedural mechanisms."

However, Baldoni's lawyer, Bryan Freedman, disputed the court's findings, calling them "a fruitless mission" to obtain damages. Freedman claimed that Lively had demanded over $300 million in fees and damages but received nothing as part of the settlement. He also maintained that Lively's allegations of sexual harassment and defamation were baseless and that innocent people had been unfairly tarnished during the process.

Freedman's statement echoed earlier comments made by his client, who had strongly denied the allegations throughout the legal battle. In December 2024, Lively accused Baldoni of creating a hostile work environment and purposefully targeting her with a smear campaign. Baldoni counter-sued Lively, claiming she had made false accusations against him.

In June 2025, a judge dismissed Baldoni's lawsuit against Lively, dealing another blow to his case. Just months later, in April, a judge ruled that most of Lively's legal claims against Baldoni would be dismissed. Some of the charges dismissed included allegations of harassment, defamation, and conspiracy.

Despite the setbacks, both parties released a joint statement expressing "closure" in the matter ahead of Lively's appearance at the Met Gala on May 4. "We acknowledge the process presented challenges and recognize concerns raised by Ms. Lively deserved to be heard," the statement read. However, the statement also noted that the end product – the movie It Ends With Us – remains a source of pride for all involved, aiming to raise awareness and make a meaningful impact in the lives of domestic violence survivors.

As for what lies ahead, Lively's team maintains that she is still entitled to receive damages due to the harm caused by the case. Meanwhile, the Wayfarer parties have hailed the result as a "win and total victory." how this complex and contentious dispute plays out, but one thing is certain: this ruling sets an important precedent for how California law handles cases like these going forward.