A New York judge has dismissed Justin Baldoni’s $400 million (£295 million) defamation lawsuit against his former co-star Blake Lively.

The pair, who starred together in the 2024 film It Ends with Us, have been embroiled in a legal dispute for several months, with a trial still scheduled for next year. However, on Monday, Judge Lewis Liman dismissed Baldoni’s countersuit, which had alleged extortion, defamation, and various other claims.

Baldoni filed the suit in response to Lively’s legal complaint last year, in which she accused him of sexual harassment and of orchestrating a smear campaign against her. In December 2024, Lively also filed a lawsuit against Baldoni’s production company, Wayfarer Studios, alleging that she was sexually harassed on the film’s set and that Baldoni retaliated against her after she reported the alleged incidents. She further detailed the allegations in an article published by The New York Times shortly before filing her lawsuit.

Baldoni’s defamation countersuit named not only Lively, but also her husband, actor Ryan Reynolds, their publicist Leslie Sloane, and The New York Times, claiming that they had collectively conspired to destroy his reputation and career.

The lawsuit focused on two central claims: that Lively “stole the film” from him and Wayfarer by threatening to withhold promotional support, and that she and her associates fabricated and promoted a narrative accusing him of sexual assault and a coordinated smear campaign. However, Judge Liman wrote in his opinion that Baldoni and his company “have not adequately alleged that Lively’s threats were wrongful extortion rather than legally permissible hard bargaining or renegotiation of working conditions.”

Additionally, the judge found that the plaintiffs failed to establish defamation. “The Wayfarer Parties have not alleged that Lively is responsible for any statements other than the statements in her lawsuit,” he noted, “which are privileged.”

Judge Liman also dismissed the $250 million suit against The New York Times, concluding that the publication did not act with “actual malice” in its reporting. “The alleged facts indicate that the Times reviewed the available evidence and reported, perhaps in a dramatized manner, what it believed to have happened,” he wrote. “The Times had no obvious motive to favor Lively’s version of events.”

In a statement to U.S. media, Lively’s legal team called the ruling “a total victory and a complete vindication for Blake Lively, along with those that Justin Baldoni and the Wayfarer Parties dragged into their retaliatory lawsuit, including Ryan Reynolds, Leslie Sloane, and The New York Times.”

Lively herself addressed the outcome on Instagram, stating, “Like so many others, I’ve felt the pain of a retaliatory lawsuit, including the manufactured shame that tries to break us.” She continued, “While the suit against me was defeated, so many don’t have the resources to fight back. I’m more resolved than ever to continue to stand for every woman’s right to have a voice in protecting themselves.”

The BBC has contacted Baldoni’s legal representatives for comment.

Judge Liman’s dismissal came a week after Lively voluntarily sought to withdraw two claims from her original lawsuit against Baldoni: intentional infliction of emotional distress and negligent infliction of emotional distress. In her filing, Lively had stated she suffered “severe emotional distress” stemming from the alleged harassment and subsequent smear campaign.

It Ends with Us is an adaptation of Colleen Hoover’s best-selling novel, with Blake Lively starring as Lily Bloom—a young woman who, after growing up witnessing domestic abuse, finds herself in a similar situation as an adult.

Despite the legal disputes surrounding its lead actors, the film remains a highly anticipated release. However, the court battles may continue, with Judge Liman granting Baldoni the opportunity to amend and refile certain claims—specifically those relating to alleged interference with contracts—by 23 June.