Justin Baldoni Facing Bankruptcy Amid Explosive Legal Battle with Blake Lively

It Ends With Us director Justin Baldoni is reportedly on the verge of bankruptcy as his high-profile legal battle with co-star Blake Lively continues to escalate. Baldoni and his legal team say the ongoing lawsuit has taken a severe emotional and financial toll, with his attorney, Bryan Freedman, revealing the strain during a pre-trial hearing on February 3.

Speaking to the court, Freedman stated that Baldoni and others involved in the case, including publicists Melissa Nathan and Jennifer Abel, as well as producers Steve Sarowitz and Jamey Heath of Wayfarer Studios, are “devastated emotionally and financially” by the legal dispute.

At the hearing, discussions also centered on Lively’s potential request for a gag order, aiming to limit public statements from both parties as the legal battle unfolds. Not to sound like a 4-year-old fighting a 4-year-old with ‘they started it,’ but in these kinds of cases, once someone says something, it becomes fact: There’s no way to fight against it,” Freedman said.

The legal feud between Baldoni and Lively intensified on January 16, when the Jane the Virgin star filed a $400 million lawsuit against Lively, her husband Ryan Reynolds, and their public relations representatives. Baldoni’s lawsuit accused Lively’s camp of civil extortion, defamation, and other legal violations, alleging a smear campaign in retaliation for previous disputes.

His lawsuit came in response to Lively’s own claims of sexual harassment and allegations that Baldoni engaged in a retaliatory effort to damage her reputation. The battle took another turn when Baldoni’s legal team also filed a separate lawsuit against The New York Times, following an article that covered the allegations against him.

According to Lively’s lawsuit, Baldoni’s alleged behavior during the production and promotion of It Ends With Us caused her “grief, fear, trauma, and extreme anxiety.” Her legal team is seeking undisclosed damages for “intentional infliction of emotional distress” and interference with her business ventures, including her haircare company, Blake Brown Haircare.

In a statement to The New York Times on December 20, Lively said, “I hope that my legal action helps pull back the curtain on these sinister retaliatory tactics to harm people who speak up about misconduct and helps protect others who may be targeted.”

The case, Lively v. Wayfarer Studios, is set to go to trial in March 2026. Judge Lewis Liman has warned both parties against making public statements that could influence the jury ahead of the trial.