A major twist has emerged in the high-profile legal battle between Blake Lively and her It Ends With Us co-star Justin Baldoni. A federal judge has dismissed most of Lively’s claims, significantly narrowing the scope of her lawsuit. In a ruling issued on Thursday, Judge Lewis Liman struck down 10 of the 13 allegations, including sexual harassment, defamation, and conspiracy, leaving just three claims to proceed to trial.The court allowed claims related to breach of contract, retaliation, and aiding and abetting retaliation to move forward. These remaining allegations will now be examined in a civil trial scheduled for May 18 in New York.Judge Liman’s detailed 152-page opinion outlined several reasons for dismissing the bulk of the case. He ruled that Lively could not pursue harassment claims under California law because the alleged incidents took place in New Jersey during filming.“None of these acts or occurrences provides the ‘substantial connection’ to California needed to sustain Lively’s sexual harassment claims,” Liman wrote, according to Variety.He also determined that Lively, as an independent contractor rather than an employee, was not eligible to bring certain federal harassment claims.Additionally, defamation claims against Baldoni and his lawyer, Bryan Freedman, were dismissed. The judge noted that many of the statements in question were directly tied to ongoing legal proceedings.“To be sure, much of what Lively complains about is not actionable. The Wayfarer Parties were entitled to engage public relations and crisis management specialists to protect their reputations,” Liman wrote. “However, certain conduct at least arguably crossed the line.”ALSO READ: Dhurandhar 2 Box Office Day 15 LIVE UpdatesStory continues below this adBlake Livey and Justin Baldoni disputeThe dispute traces back to the 2024 release of It Ends With Us, an adaptation of Colleen Hoover’s bestselling novel. The film, which stars Lively as Lily Bloom, a young woman confronting cycles of domestic abuse, grossed an impressive $350 million worldwide.However, behind the scenes, tensions reportedly escalated between Lively and Baldoni, who also directed the film under his banner, Wayfarer Studios.Lively filed her lawsuit in December 2024, accusing Baldoni of sexual harassment on set, including inappropriate comments about her appearance and weight. She also alleged that he orchestrated a coordinated smear campaign using publicists and media manipulation to damage her reputation.Baldoni has strongly denied all allegations. His legal team argued that Lively exaggerated claims to gain control over the film and unfairly portray him as the villain.Story continues below this adThey described her complaints as “minor grievances” and maintained that Baldoni had every right to defend himself against what he considers false accusations.Baldoni had filed a $400 million countersuit against Lively, accusing her of defamation, civil extortion, and invasion of privacy—but that case was also dismissed.Baldoni’s lawyers react to dismissal of charges“We’re very pleased the Court dismissed all sexual harassment claims and every claim brought against the individual defendants. These were very serious allegations, and we are grateful to the court for its careful review of the facts, law and voluminous evidence that was provided. What’s left is a significantly narrowed case, and we look forward to presenting our defense to the remaining claims in court,” attorneys Alexandria Shapiro and Jonathan Bach were quoted as saying by Variety.Lively’s team shifts focus to retaliation claimsDespite the setback, Lively’s legal team insists the heart of the case remains intact. Sigrid McCawley, a member of her legal team, said that the trial will focus on what she describes as a coordinated retaliation effort.Story continues below this ad“This case has always been and will remain focused on the devastating retaliation and the extraordinary steps the defendants took to destroy Blake Lively’s reputation because she stood up for safety on the set and that is the case that is going to trial,” McCawley was quoted as saying by Variety.She also clarified that the sexual harassment claims were dismissed due to technical grounds—not because of a lack of wrongdoing.“For Blake Lively, the greatest measure of justice is that the people and the playbook behind these coordinated digital attacks have been exposed and are already being held accountable by other women they’ve targeted. She looks forward to testifying at trial and continuing to shine a light on this vicious form of online retaliation so that it becomes easier to detect and fight.”The controversy surrounding the film extended beyond the courtroom. Rumors of a rift between the two leads began circulating during the film’s release and quickly escalated into a prolonged legal saga.Story continues below this adWhat happens next?A mediation attempt in February failed to produce a settlement, setting the stage for a courtroom showdown in May.With most claims dismissed but key retaliation allegations still alive, the trial is expected to focus on whether Baldoni and his associates engaged in a deliberate campaign to damage Lively’s reputation.This article provides factual reporting on legal proceedings and professional disputes between public figures; it is intended for informational purposes and does not constitute legal advice or a formal recommendation.Watch Chetak Screen Awards 2026 LIVE on YouTube, Sony Entertainment Television, and Sony LIV on April 5 at 8 pm.