has come to a dramatic close in federal court, as Judge Lewis J. Liman dismissed Baldoni’s $400 million countersuit against Lively, Ryan Reynolds, and their publicist. The judge also tossed out a related $250 million defamation suit against The New York Times, dealing a significant blow to Baldoni and his production company, Wayfarer Studios.Baldoni’s lawsuit alleged defamation, extortion, and tortious interference, claiming that Lively, Reynolds, and their publicist Leslie Sloane made damaging statements about his conduct during the production of “It Ends With Us.” The suit also accused The New York Times of participating in a smear campaign. However, Judge Liman ruled that statements made in Lively’s California Rights Department (CRD) complaint were legally privileged and that media coverage by the Times was protected under the ‘fair report’ privilege.

Lively’s legal team celebrated the decision, calling it a “complete triumph and a full exoneration” for their client and those named in the suit. “From the outset, we maintained that this '$400 million' lawsuit was a farce, and the Court recognized that,” Lively’s attorneys Esra Hudson and Mike Gottlieb told Variety and the New York Post. They added that the next phase could involve seeking attorneys’ fees and punitive damages against Baldoni and Wayfarer Studios for what they called “abusive litigation.”

Baldoni’s legal team, meanwhile, has been granted the opportunity to amend and refile certain claims related to breach of implied covenant and tortious interference with contract by June 23, but the core defamation and extortion allegations have been dismissed with prejudice.

This ruling follows a series of legal maneuvers on both sides, including Lively’s recent move to withdraw two claims of emotional distress against Baldoni, citing a desire to streamline her case after disputes over medical record disclosures. The saga, which began after Lively’s allegations of sexual harassment and a hostile work environment during the making of “It Ends With Us,” has captivated both Hollywood and the public.