In a 152-page ruling issued Thursday, April 2, 2026, U.S. District Judge Lewis J. Liman found that Lively’s sexual harassment claims could not proceed under federal law because she was working as an independent contractor, not an employee. Title VII of the Civil Rights Act of 1964 applies only to employees, and the judge said that distinction was decisive.
The ruling also addressed Lively’s allegations about Baldoni’s conduct on set, including claims that he improvised physical contact and made comments about her appearance. Liman wrote that such behavior must be considered within the context of filmmaking, where actors and directors often experiment with scenes. He said creative work allows for some flexibility, as long as actions do not go beyond what would reasonably be expected for a scene.
Lively’s defamation claims were also dismissed. She had accused Baldoni and his legal team of orchestrating a public relations campaign to damage her reputation. The judge ruled that the statements in question were protected because they reflected Baldoni’s legal defense and were made in that context.
Despite these dismissals, the lawsuit is not over. Several claims remain and will move forward to trial.
Lively is still pursuing retaliation claims against Baldoni’s production company, Wayfarer Studios. She alleges the company attempted to harm her career after she raised concerns about safety on set. A breach of contract claim related to a rider agreement will also be considered by a jury.
Additionally, while the harassment claims themselves were dismissed, evidence about Baldoni’s alleged behavior on set may still be introduced at trial to support Lively’s retaliation case.
The trial is scheduled to begin on May 18, 2026.
The ruling follows an earlier decision in June 2025, when the same judge dismissed Baldoni’s $400 million countersuit against Lively and her husband, Ryan Reynolds. That countersuit had accused them of defamation and extortion.
Attorneys for Baldoni said they were pleased with the dismissal of what they described as the most serious allegations. Lively’s legal team said the case remains focused on what they characterize as retaliation after she spoke up about conditions on set.
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