A federal judge in New York dismissed most claims in Blake Lively's lawsuit against Justin Baldoni on Thursday, narrowing the high-profile dispute over their work on the film "It Ends With Us."

U.S. District Judge Lewis J. Liman ruled in a 152-page opinion that Lively could not pursue her sexual harassment claims under Title VII of the Civil Rights Act because she was an independent contractor, not an employee, during production. He also tossed defamation and conspiracy allegations, leaving three claims intact: breach of contract against It Ends With Us Movie LLC, retaliation, and aiding and abetting retaliation.

The ruling came roughly six weeks before a trial scheduled to begin on May 18. While the harassment claims were dismissed, the surviving retaliation counts could allow a jury to consider many of Lively's underlying allegations, including inappropriate on-set behavior by Baldoni.

Lively first filed a complaint with the California Civil Rights Department on December 20, 2024, accusing Baldoni of sexual harassment and retaliation. She followed with a federal lawsuit on December 31, 2024, and amended it in February 2025 to include Baldoni's company, Wayfarer Studios, and others. The suit stemmed from tensions during filming of "It Ends With Us," a 2024 adaptation of Colleen Hoover's novel that opened to $50 million at the box office despite reported discord.

Lively alleged Baldoni created a hostile environment, including incidents where he allegedly kissed her forehead, rubbed his face against her neck, flicked her lip, caressed her, and commented that her neck "smells good" during a slow-dance scene. She also cited his push for a prolonged naked birth scene with nonessential personnel present and a remark calling her "pretty hot" after she removed a jacket. Judge Liman acknowledged the conduct might support a claim in other workplaces but found it fell within the bounds of acting in this context, stating creative artists need space to experiment without harassment liability.

Lively further claimed that after she raised concerns via an "intimacy coordinator" and in a producer meeting, Baldoni and his team launched a "smear campaign" through media and social channels, costing her $161 million in damages. The judge noted limits to defensive responses, allowing retaliation claims to proceed where a jury might find excessive actions.

Baldoni has denied the allegations, portraying them as attempts to marginalize him creatively. He countersued Lively and her husband, Ryan Reynolds, for $400 million in defamation and extortion, but Judge Liman dismissed that suit last June.

Lively's attorney, Sigrid McCawley, said the actress looks forward to testifying on the "devastating retaliation" for prioritizing set safety. Baldoni's lawyers, including Alexandra Shapiro and Jonathan Bach, welcomed the dismissals as vindication after a thorough review, anticipating defense on remaining issues.

Bryan Freedman, another Baldoni attorney, called the outcome a gratifying confirmation of their position based on evidence. The case heads to jury selection discussions following Thursday's phone conference.