The “Jane the Virgin” star recently suffered a significant loss after a judge dismissed his $400 million defamation lawsuit. He filed smear campaign allegations against his former co-star, her husband, Ryan Reynolds, and the New York Times a month after he was accused of harassing the actress.

The drama between Justin Baldoni and Blake Lively stemmed from their time in the movie “It Ends With Us.” The actress accused the project’s co-star and director of sexual harassment and efforts to ruin her image in December 2024; however, he has denied the allegations and painted her as the problem.

Baldoni’s attorney, Bryan Freedman, addressed the dismissal of the $400 million defamation lawsuit in a statement released on Tuesday, June 10.

He claimed that Lively and her team were celebrating far too early because the war was not over, even if they achieved a small victory. Baldoni’s attorney explained:

“Ms. Lively and her team’s predictable declaration of victory is false, so let us be clear about the latest ruling. While the Court dismissed the defamation-related claims, the Court has invited us to amend four out of the seven claims against Ms. Lively, which will showcase additional evidence and refined allegations.”

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The legal rep assured TMZ they were not disheartened by the judge’s decision to toss the defamation lawsuit out of Court.

Instead, Baldoni and his lawyer saw the outcome as an opportunity to prove Lively dropped false accusations of sexual harassment and claims of a nonexistent smear campaign to ruin the actor’s image.

Hours before Baldoni’s legal rep declared their intention to keep fighting against Lively, The Blast shared that the actress was all smiles on Monday night. She made her first public appearance after the defamation lawsuit was tossed at the Chanel Tribeca Festival Artists Dinner in New York City.

Lively stunned on the red carpet like a woman with a massive weight off her shoulders, posing confidently for the cameras in a white crochet dress. She complemented the outfit with Louboutin heels and Chanel accessories, posing confidently for photographers while her hair flowed down her shoulders in graceful waves.

A source claimed the outing came after Lively was overcome with emotions following the judge’s ruling in her favor. “Complete elation from Blake’s world and a monkey off her back.

Blake is breathing a sigh of relief right now, and all tears are happy tears,” the insider said, adding she “cried with relief” after the verdict.

While Lively allegedly “cried with relief,” her attorneys proudly celebrated Baldoni’s lawsuit dismissal. They reacted to the ruling in a statement, describing the judge’s decision as a “total victory” for the actress while slamming her defamation accusers for their “sham” allegations.

Lively’s reps claimed the court “saw right through” Baldoni’s alleged lies, and they were ready to keep proving he wasn’t as innocent as he claimed to be.

“We look forward to the next round, which is seeking attorneys’ fees, treble damages, and punitive damages against Baldoni, Sarowitz, Nathan, and the other Wayfarer Parties who perpetrated this abusive litigation,” they stressed.

The next round would reportedly begin sometime after June 23; the time limit the judge gave Baldoni and his team to file a second amended complaint. He was ordered to restrict any new allegation to claims of “tortious interference with contract and breach of implied covenant.”

Following the ruling in her favor, Lively broke her silence on Baldoni’s defamation lawsuit dismissal on her Instagram Story. She shared an emotional statement on Monday, June 9, maintaining her innocence in the legal drama and painting herself as a victim.

“Like so many others, I’ve felt the pain of a retaliatory lawsuit, including the manufactured shame that tries to break us. While the suit against me was defeated, so many don’t have the resources to fight back,” Lively wrote.

She noted her drama with Baldoni only fueled her desire to fight for women without a voice. Lively continued by thanking everyone who stood by her, noting she knew many of them, while others were strangers who had sympathized with her situation.

“I will never stop appreciating or advocating for you,” she declared, per PEOPLE. She also added a list of relevant organizations like California Women’s Law Center and Women’s Justice NOW.

A month before his defamation lawsuit was thrown out of Court, The Blast shared that Baldoni had suffered a loss in his legal battle against his former co-star. On May 15, Judge Lewis J. Liman granted Lively’s motion to dismiss the allegations brought by Baldoni’s attorney.

The actor’s legal rep had shared a letter from a source that claimed Lively’s attorney, Michael Gottlieb, had threatened to release her text messages with Taylor Swift if the singer didn’t support the actress. The judge argued that the letter was “improper” and “irrelevant” to the case.

Judge Liman also stressed that the letter might incite “press uproar by suggesting that Lively and her counsel attempted to ‘extort’ a well-known celebrity.” The legal umpire noted that he could not permit such documents in his Court and dismissed it.

Will Justin Baldoni have better luck against Blake Lively when he files his amended lawsuit?