NEW YORK CITY — U.S. District Judge Lewis J. Liman ruled that Wayfarer Studios must pay Blake Lively's legal fees incurred while defending against Justin Baldoni's defamation lawsuit. This fee ruling was granted under a 2023 California law designed to protect sexual harassment accusers from retaliatory defamation lawsuits.

Judge Liman also denied Lively's request for triple and punitive damages under federal law. The judge wrote that Lively retains the right to pursue additional damages through separate legal proceedings, including an independent civil lawsuit or counterclaim.

Lively and Baldoni settled their legal claims in early May before a scheduled trial in New York. As a condition of the settlement, both parties agreed to accept Judge Liman's decision on the fee motion without filing an appeal.

Judge Liman previously dismissed a defamation and extortion lawsuit filed by Baldoni against Lively. Baldoni had filed defamation and extortion counterclaims against Lively and Ryan Reynolds in January 2025. Lively had accused Baldoni of sexual harassment during filming and alleged his company retaliated after she reported the conduct. Baldoni denied the harassment allegations made by Lively.

Esra Hudson, an attorney for Blake Lively, said, "Blake Lively won her motion under Civil Code Section 47.1. 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. 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." Judge Liman also dismissed a separate defamation lawsuit filed by Baldoni against The New York Times. Reynolds publicly defended Lively during her legal proceedings.