Lively's Legal Fees Covered in Settlement

Justin Baldoni has been ordered by a court to pay Blake Lively's legal fees, as the pair settled their contentious "It Ends With Us" dispute. Judge Lewis J. Liman ruled on June 12, 2026, that Lively is entitled to recover her defense costs, citing a 2023 California law designed to shield sexual abuse accusers from retaliatory defamation suits. Lively's attorneys hailed the decision as validation of her good faith claims and a win for survivors facing intimidation. The ruling, however, denied Lively's requests for triple and punitive damages, citing federal law limitations. The settlement agreement, reached prior to the Met Gala on May 4, 2026, brought an end to a legal drama that started in December 2024. Lively had accused Baldoni of sexual harassment, a hostile work environment, and a smear campaign. Baldoni denied the allegations and counter-sued, but his lawsuit was dismissed in June 2025. Despite an earlier legal setback for Lively in April 2026, this recent ruling addresses her defense costs. Both parties have expressed a desire for closure and a commitment to professional environments moving forward.