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Blake Lively attends the 2026 Met Gala celebrating “Costume Art” at the Metropolitan Museum of Art, May 4, 2026, in New York. Justin Baldoni speaks onstage at the Vital Voices 12th Annual Voices of Solidarity Award, Dec. 9, 2024, in New York. (Dimitrios Kambouris/Getty Images | Bryan Bedder/Getty Images)
A New York federal judge has ruled that Justin Baldoni and his production company, Wayfarer Studios, must pay his former It Ends With Us co-star Blake Lively’s attorneys’ fees, after the parties reached a settlement last month in Lively’s lawsuit against the actor and production studio.
U.S. District Judge Lewis Liman denied Lively’s claim for punitive damages but wrote that the actress was entitled to attorneys’ fees under California Civil Code Section 47.1.
Section 47.1 states in part that a “prevailing defendant” in a defamation case is “entitled to their reasonable attorney’s fees and costs for successfully defending themselves in the litigation,” as well as any additional damages permitted by a judge.
In a statement to ABC News following the ruling, Lively’s attorneys Esra Hudson and Michael Gottlieb said the judge’s decision “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.”
“Ms. Lively is gratified that her lawsuit shows how Section 47.1 and laws like it create a path for survivors to hold accountable those who weaponize online attacks and retaliatory lawsuits to intimidate and silence survivors,” they added.
ABC News has reached out to representatives for Baldoni for comment.
Friday’s decision comes after the parties reached a settlement in early May in Lively’s lawsuit against Baldoni, ending their nearly year-and-a-half legal dispute.
According to settlement documents filed May 7 in the Southern District of New York, Baldoni, via his Wayfarer production company, and Lively agreed to settle their ongoing dispute on terms that Lively could still seek to recover attorney’s fees and additional damages.
The terms of the settlement were not disclosed.
Lively and Baldoni’s legal battle kicked off in December 2024, when Lively filed a complaint with the California Civil Rights Department alleging “severe emotional distress” after she said Baldoni and key stakeholders in the film — which Baldoni also directed — sexually harassed her and attempted, along with Baldoni’s production company, to orchestrate a smear campaign against her.
Baldoni followed up the action by filing a lawsuit against the New York Times for libel and false light invasion of privacy on Dec. 31 after it published the article about Lively’s California complaint.
Lively subsequently formalized her complaint into a lawsuit against Baldoni in New York, also on Dec. 31.
Baldoni responded by filing a civil lawsuit against Lively, her husband, Ryan Reynolds, and others for, among other things, extortion and defamation.
The suits were consolidated into one lawsuit in January 2025.
In June last year, Baldoni’s $400 million lawsuit against Lively, Reynolds and the couple’s publicist Leslie Sloane, as well as Baldoni’s defamation suit against the Times, was dismissed by Liman.
A federal judge in New York gutted much of Lively’s case against Baldoni in April of this year, including claims she was subjected to sexual harassment on set.
The judge determined in a ruling at the time that Lively would be allowed to pursue certain claims of retaliation against Baldoni’s public relations team over alleged harm to her reputation.
In May, after reaching a settlement in their protracted legal dispute, the two actors issued a joint statement via their respective legal teams, saying, “We remain firmly committed to workplaces free of improprieties and unproductive environments. It is our sincere hope that this brings closure and allows all involved to move forward constructively and in peace, including a respectful environment online.”
Backrooms hasn’t even left movie theaters yet, but a new version of the film will soon be available to watch on the big screen.
A24 is set to release Backrooms: Everything Must Go Edition to theaters on July 3. The film, which was directed by Kane Parsons, is the studio’s highest-grossing in history. It has already brought in over $330 million worldwide after it was produced for only $10 million.
A spokesperson for A24 did not immediately respond to ABC Audio’s request for comment.
AMC Theatres shared a listing for the new version of the film on Monday. According to the exhibitor, this version of the film “includes 15 minutes of new, theatrically exclusive post-credit bonus footage from Kane Parsons.” It runs for two hours and six minutes.
Backrooms opened in theaters on May 29. It brought in more than $81 million at the domestic box office in its opening weekend. This made it the biggest debut in history for an original horror film, as well as the biggest debut for a first-time filmmaker on a nonfranchise film. He was 20 years old at the time, making Parsons the youngest director to have a #1 film at the box office.
The horror film is based on Parsons’ popular YouTube series. It stars Chiwetel Ejiofor and Renate Reinsve as two people who enter a secret doorway into a maze of seemingly endless rooms.
