June 23, 2026
Willkie and co-counsel Manatt secured a precedent-setting award of legal fees and costs that Blake Lively incurred in defeating a defamation countersuit in her high-profile litigation with Justin Baldoni, Lively’s co-star and director of It Ends With Us.
On June 12, Judge Lewis Liman of the U.S. District Court for the Southern District of New York ruled that Lively was entitled to recover attorneys’ fees and costs after prevailing against Baldoni and the Wayfarer Parties’ $400 million defamation action last year. The decision sets a precedent for how future survivors of sexual harassment and retaliation can deploy the protections of California’s statute prohibiting retaliatory “weaponized defamation” lawsuits, California Civil Code Section 47.1, in federal court.
Willkie and Manatt also represented Lively in her underlying sexual harassment and retaliation lawsuit against Baldoni tied to the filming of It Ends With Us. The claims were largely resolved through a settlement in May 2026, which included a joint statement, and expressly preserved Lively’s right to pursue compensation through her claims for fees and statutory damages under Section 47.1 as a result of the failed retaliatory defamation lawsuit against her.
Judge Liman’s nearly 50-page decision marks the first time that Section 47.1’s qualified privilege for sexual harassment and sexual assault complainants has been applied successfully in federal court and the first time a prevailing defendant has been awarded fees and costs under the statute. The Court’s decision paves a procedural path for survivors who prevail against retaliatory defamation lawsuits to obtain such damages in federal court, ensuring that this straightforward fee-shifting remedy under California law is available regardless of the forum. Willkie roundly defeated the Wayfarer Parties’ arguments on numerous grounds, including that Section 47.1 is unconstitutional, does not apply in federal court, and does not apply where the defamation lawsuit was dismissed on grounds other than Section 47.1, as well as other matters of first impression.
The Willkie team is led by partners Michael Gottlieb, Kristin Bender, and Aaron Nathan, and associates Michaela Connolly and Melissa Taustine, along with an excellent and hard-working team of associates and staff.
On June 12, Judge Lewis Liman of the U.S. District Court for the Southern District of New York ruled that Lively was entitled to recover attorneys’ fees and costs after prevailing against Baldoni and the Wayfarer Parties’ $400 million defamation action last year. The decision sets a precedent for how future survivors of sexual harassment and retaliation can deploy the protections of California’s statute prohibiting retaliatory “weaponized defamation” lawsuits, California Civil Code Section 47.1, in federal court.
Willkie and Manatt also represented Lively in her underlying sexual harassment and retaliation lawsuit against Baldoni tied to the filming of It Ends With Us. The claims were largely resolved through a settlement in May 2026, which included a joint statement, and expressly preserved Lively’s right to pursue compensation through her claims for fees and statutory damages under Section 47.1 as a result of the failed retaliatory defamation lawsuit against her.
Judge Liman’s nearly 50-page decision marks the first time that Section 47.1’s qualified privilege for sexual harassment and sexual assault complainants has been applied successfully in federal court and the first time a prevailing defendant has been awarded fees and costs under the statute. The Court’s decision paves a procedural path for survivors who prevail against retaliatory defamation lawsuits to obtain such damages in federal court, ensuring that this straightforward fee-shifting remedy under California law is available regardless of the forum. Willkie roundly defeated the Wayfarer Parties’ arguments on numerous grounds, including that Section 47.1 is unconstitutional, does not apply in federal court, and does not apply where the defamation lawsuit was dismissed on grounds other than Section 47.1, as well as other matters of first impression.
The Willkie team is led by partners Michael Gottlieb, Kristin Bender, and Aaron Nathan, and associates Michaela Connolly and Melissa Taustine, along with an excellent and hard-working team of associates and staff.
