Did Anyone Really Win? Inside the Aftermath of Blake Lively and Justin Baldoni’s Ugly Legal Battle (Exclusive)

After 18 months of seemingly endless PR mudslinging and more than 1,400 court filings, the bitter legal battle between Blake Lively and Justin Baldoni appears to finally — mercifully — be winding down. In early May, two weeks before their high-profile trial was set to start, attorneys announced they’d settled the case out of court. On June 12, Judge Lewis Liman ordered Baldoni to pay Lively’s legal fees under a California law created to shield sexual harassment victims from retaliatory defamation claims but denied her request to pursue damages.

As of press time, Judge Liman had yet to determine the amount Baldoni, 42, will need to pay Lively, 38. In the meantime, sources tell Us Weekly both stars are doing their best to move on with their lives following one of Hollywood’s ugliest and most polarizing feuds. “Justin’s focus is on his family and living in the moment,” says one source. The Jane the Virgin alum is dad to daughter Maiya, 11, and son Maxwell, 8, with his wife of nearly 13 years, Emily Baldoni. “He wants to get back to some sense of normalcy for them.” Lively, who shares daughters James, 11, Inez, 9, and Betty, 6, and son Olin, 3, with husband Ryan Reynolds, has her sights set on returning to work. “Blake is focused on rebuilding her career,” a second source says. “She’s confident she can come back from this.”

They both face the arduous task of rehabilitating their reputations. “Neither side emerged as an overall winner,” says David Johnson, CEO of Strategic Vision PR Group. “But Blake suffered the most because people viewed her as humorous, family-oriented and approachable, and the lawsuit tarnished that image.” PR expert Mark Borkowski says it’s best to let her work do the talking. “[She should be] undeniable in the work and boring everywhere else. Boring is the most underrated crisis strategy in the business.”

Baldoni’s sensitive “Man Enough” podcast host persona took a huge hit. “Recovery from a case like this depends on three factors,” says Johnson, “the absence of new controversies, continued professional achievement and time.” Adds Borkowski: “Justin’s only route back [is to] make something good and [be quiet] for two years.”

A third source says the actress was ready and willing to go to trial. “Blake was anxious, but also prepared. She had accepted that a trial was a real possibility and spent months getting herself mentally prepared.” In court documents, Lively alleged that during filming, Baldoni improvised kissing scenes, made inappropriate comments about her body and spoke openly of his past porn addiction (Baldoni has denied the claims). “Part of Blake wanted the opportunity to tell her story in court,” the source adds. “She thought she would at least win [when it came to] public opinion.”

Still, Lively is relieved she can finally move forward. “She felt confident in her position, but it was still incredibly stressful,” explains the source. “She was ready to fully focus on her family, her career and getting back to normal life instead of staying tied up in litigation for another year.”

Baldoni felt “a huge sense of relief” when Judge Liman dismissed 10 out of 13 of Lively’s allegations back in April, says the first source. While Baldoni’s production company, Wayfarer, was set to proceed against the remaining claims, the actor was glad “to put an end to a drawn-out legal process.”

A public trial could’ve been disastrous for both Lively and Baldoni. “Nothing tanks public perception faster than dragging your mess into a courtroom and letting the world watch it turn into a full-blown circus,” says publicist Steven Cuoco. (Johnny Depp and Amber Heard’s infamous 2022 defamation trial is proof.) Settling out of court “gives off the vibe that Blake and Justin finally chose the grown-up route,” adds Cuoco.

In a statement, Lively’s legal team told Us that Judge Liman’s decision to have her legal fees paid by Baldoni was a major triumph, noting that the actress is “gratified” by the ruling. She won the motion under Civil Code Section 47.1, a law designed by attorney Victoria Burke. “It would seem to be [a win],” Burke tells Us, noting that the exposure the law has gotten via Lively’s case is “a positive outcome. People now know these protections are available.”

Lively’s legal team notes that “Justin Baldoni and his Wayfarer collaborators have become the first plaintiffs ever to be found liable in federal court under California Civil Code Section 47.1 for unlawfully retaliating against a sexual harassment and retaliation victim through litigation.” They add that “Ms. Lively is the first person in history to successfully apply Section 47.1 in federal court and has charted the path for future victims who face abuse and harassment to do the same.”

Burke previously said she worried Lively was using 47.1 as a weaponized PR tool. She tells Us Lively’s lawyers talked to her about expanding the law nationally, “but I had already moved the bill successfully into four states and introduced it in 15 states. I was concerned because I had seen [Blake’s] appearance at the Met Gala… and then here’s this plan for moving the bill without consideration that it’s already started [and] part of the nationwide movement is underway. So I was like, ‘I’m not understanding what’s happening here. Is this being used for PR?’ That was one of my concerns, because the bill is so important for survivors.” [Lively made a surprise appearance at the May 4 Met Gala, walking the carpet in a Versace gown just hours after settling with Baldoni.] Burke tells Us she ultimately remained “neutral” about the case, adding, “Any of my statements were always regarding the bill, not in favor of Blake or Justin.”

The first source says some perceive that Lively “put everyone through hell and then settled” and is now “trying to find new pathways because she doesn’t feel vindicated.” A source close to Lively tells Us that “only after Baldoni and the Wayfarer Parties were finally willing to admit that Ms. Lively did not fabricate her claims, and that her claims ‘deserved to be heard,’ she was willing and able to reach an agreement.” The source adds, “there is only one side that lost their entire lawsuit, and that was Baldoni and the Wayfarer Parties, whose $400 million was dismissed in its entirety.”

However, the first source sees it differently, telling Us, “Blake’s team asked to settle. The settlement was a mutual decision to move forward. There was no admission of wrongdoing by any defendant. The parties simply agreed that Blake had the right to share her perspective and have it heard. That’s as far as it went.”

Attorney Lisa Bloom notes that Lively and Baldoni’s settlement contained “a specific carveout” that allowed Lively to retain the right to ask the court to award her money under 47.1. “This is a straightforward case of a sexual harassment plaintiff being countersued for defamation — [and that’s] exactly what this law is designed to prohibit,” she says.

As attorney Tre Lovell points out, the legal fees Baldoni will be forced to pay are those incurred while Lively’s team worked on getting his countersuit dismissed, which are separate from the rest of the case. Baldoni’s attorney, Bryan Freedman — who released the settlement publicly on June 16 — tells Us that The New York Times spent $180,000 in legal fees when Baldoni sued the outlet for defamation and estimates the amount Baldoni will have to pay Lively could “be in the neighborhood of that amount.” Says the first source: “The expectation is attorney’s fees should be a drop in the bucket compared to the millions Blake was seeking.”

It’s hard to point to a clear winner in the case. “Baldoni lost his countersuit and now faces a fee award to Lively,” says attorney Joe Meadows, partner at Fox Rothschild LLP. “On the other side, most of Lively’s claims were dismissed, and no damages were awarded. The outcome seems genuinely mixed.” Adds Bloom: “In reality, the only true winners here were the lawyers.”

Baldoni is producing the upcoming film Dinner with Audrey, starring Thomasin McKenzie as Audrey Hepburn and Ansel Elgort as Hubert de Givenchy. But the first source says he’s not looking to direct or act again right now. “He’s not worried about work. He feels like when he’s ready, it will work out. He’s been patient and let the process play out. That was important to him.” Baldoni is thinking of writing a book. “[It would be] about his experience and the impact it’s had on him. But nothing is solid, and he’s in no rush,” the source adds. “He’s still processing and healing.” Freedman tells Us he believes Baldoni will tell his side of the story at some point. “I think we will hear from him,” he says, adding, “Justin’s looking forward to going back to work and having the opportunity to do what he loves to do.”

He and Emily relocated to Nashville in late 2025. “It’s been a difficult time for his family, and he wanted to create some privacy,” the source says. “It’s been a really welcoming community, and he’s living as much of a normal life as he can.” Emily, 41, has been his rock. “This brought them closer. She’s a grounding force. He’s been very lucky to have an incredible support system around him.”

Lively knows she has work to do on revamping her image. “She is rebuilding right now and looking at projects that would be the best fit for her,” explains the source. “She wants to get back to work but is being intentional about it. She’d love to work on more female-driven projects moving forward. This experience reinforced how important it is for her to feel safe and supported.” Reynolds, 49, hasn’t left her side. “This took a huge toll on Blake’s mental health, and there were days she couldn’t get out of bed,” reveals the source. “At times, her kids and Ryan were the only reason she could push forward. They are a strong family unit.” Now, the Lively source says the actress wants to move on, “but not at the expense of seeing justice done.”

Freedman predicts motions will be filed over the fee amount until Judge Liman comes to a ruling. “And that should end the matter involving Blake Lively and Justin Baldoni,” he says. “It’s interesting that the film is called It Ends With Us [because] this never seemed to end. It should be over.”

For more on Blake Lively and Justin Baldoni, watch the exclusive video above and pick up the latest issue of Us Weekly — on newsstands now.

With additional reporting by Brody Brown, Paola Leva and Whitney Vasquez