A U.S. federal judge has awarded actor Blake Lively $407,000 in legal fees and costs after she successfully defended against a defamation lawsuit filed by Justin Baldoni, a fraction of the $8.04 million she had sought.
U.S. District Judge Lewis Liman in Manhattan ruled on Wednesday that Lively’s legal team had presented a case that was "extremely well-litigated," with hourly billing rates exceeding $2,000 deemed "not unreasonable" given the case’s complexity and high stakes. However, the judge found that Lively’s request for $8.04 million in reimbursement was excessive, limiting recovery primarily to expenses tied to defending against Baldoni’s defamation claim.
The dispute originated from the 2023 film It Ends With Us, in which Lively starred and Baldoni directed. Lively initially sued Baldoni and his production company, Wayfarer Studios, alleging sexual harassment and retaliation. Baldoni counter-sued for defamation in January 2025, after which Lively’s harassment claims were dismissed and all claims against Baldoni were dropped. A settlement followed, though Lively received no monetary compensation from it. She ultimately prevailed in defending against Baldoni’s defamation lawsuit.
Judge Liman’s ruling noted that while the case involved significant legal work, Lively’s legal team failed to adequately justify many of the billed hours, particularly those related to media relations and defense against a motion for sanctions. The judge also excluded certain categories of expenses from the award. Both parties had agreed in advance not to appeal the fee decision.
Lively’s attorneys, Michael Gottlieb and Esra Hudson, stated that the award under California’s 2023 law protecting sexual harassment accusers from retaliatory defamation suits was "historic" and demonstrated consequences for retaliatory litigation. Baldoni’s lawyer, Bryan Freedman, called the ruling a "significant victory" and emphasized that the courtroom is not a tool for leveraging legal action for personal gain.
