When Legal Bills Become the Real Lawsuit: Blake Lively and Justin Baldoni's Costly Settlement

When a lawsuit becomes a settlement, you’d think the drama ends. Not quite. On Monday, May 4, Blake Lively and Justin Baldoni announced they’d settled their legal battle—the one that started when the It Ends With Us costar sued Baldoni and Wayfarer Studios in December 2024 over sexual harassment, retaliation, and breach of contract allegations. But here’s where it gets interesting: just three days later, on Thursday, May 7, Lively’s attorneys filed a request for damages, arguing that Baldoni had weaponized the legal system against her for speaking out.

And the bill? Well, if Page Six’s claim of $60 million in combined legal spending holds water, this whole mess has become a masterclass in why ordinary people can’t afford to fight back.

Lively’s lawyer, Sigrid McCawley, didn’t shy away from the cost question when asked by Entertainment Tonight. She acknowledged that battles like this one are“expensive”—understatement of the year—and emphasized why California Civil Code Section 47.1 exists. That law is designed to shield people who report sexual harassment from retaliatory defamation lawsuits. Without it, McCawley pointed out, most people simply can’t afford to mount this kind of defense.“She knows that that’s a privilege. She knows that most people are not in a position to do that,”McCawley said of her client.

The timeline tells its own story. A judge had already dismissed 10 of Lively’s 13 claims in April 2025, including the sexual harassment charges themselves. Baldoni’s countersuit, filed in his own defense, was dismissed in June 2025. By May, three remaining claims were headed to trial—until Lively voluntarily dismissed them as part of the settlement. Baldoni’s lawyer, Bryan Freedman, called it a“total victory”for his client, claiming Lively settled because“they knew they were going to lose in court.”

But the settlement didn’t end it. Lively’s latest move seeks damages under that Section 47.1 protection, with her attorneys Michael Gottlieb and Esra Hudson arguing that by settling and waiving appeal rights, Baldoni“now face[s] personal liability for abusing the legal system to silence and intimidate”her. They also noted that Baldoni’s agreement that her concerns“deserved to be heard”effectively admits the harassment claims weren’t fabricated.

Freedman fired back, calling the damages request“more nonsense from Ms. Lively”and suggesting she can’t take responsibility for her actions. Whether he’s right or wrong, one thing’s clear: the legal system just became a proving ground for two actors with the resources to afford the fight. For everyone else? This case is a brutal reminder that speaking up can cost more than most people earn in a lifetime.