After weeks of whispers and legal back-and-forth, Blake Lively insists she has not dropped her emotional distress claims against Justin Baldoni, despite assertions made by his legal team and even hints from her own lawyers. What began as a quietly filed lawsuit over the holidays has morphed into one of the most high-stakes celebrity legal disputes of 2025 — with mental health records, HIPAA forms, and a $400 million price tag now in play.
What’s Going On?
Lively’s New Year’s Eve lawsuit against Justin Baldoni, Wayfarer Studios, and several high-profile figures — including billionaire Steve Sarowitz and CEO Jamey Heath — originally included 11 claims, two of which were for intentional and negligent infliction of emotional distress.
But now, Baldoni’s legal team says those claims are being dropped.

“Ms. Lively’s counsel recently advised us, in writing, that Ms. Lively is withdrawing her IED [Intentional Emotional Distress] Claims,” wrote Baldoni attorney Kevin Fitz in a letter to the judge.
Lively’s Response: “Not So Fast”
Not true, says Team Lively. In a sharply worded response, Lively’s lawyers pushed back, saying that any changes are strategic — not an admission of defeat.
“We’re preparing for trial, not the tabloids,” said attorneys Esra Hudson and Mike Gottlieb, slamming the opposing legal team’s media tactics.
They argue that removing certain claims — if at all — is part of streamlining the case as it moves toward a March 2026 trial date.
So Are the Claims Dropped or Not?
That’s where things get murky.
While her lawyers have signaled a potential drop of the emotional distress claims, they’re not backing away from the broader narrative. In fact, they’re doubling down on allegations of sexual harassment, retaliation, and ongoing emotional distress baked into the remaining counts of the lawsuit.

“Ms. Lively continues to allege emotional distress… and massive additional compensatory damages,” they emphasized.
Why Emotional Distress Claims Matter
At the heart of the latest dispute is a battle over mental health records. Baldoni’s legal team wants access to Lively’s private medical and mental health history, demanding HIPAA authorizations as part of their defense.
Lively’s side sees that as a line too far, suggesting it’s part of an intimidation strategy rather than legitimate legal process.
What’s Next?
Judge Lewis J. Liman will decide whether to compel Lively to turn over sensitive health information — or whether the emotional distress claims will remain part of the suit at all. What’s clear is that both sides are digging in for a long legal fight that’s already captivated the public eye.

With the court date not until March 9, 2026, this is only the latest flare-up in what’s becoming a slow-burning Hollywood legal drama.
At a Glance: Key Facts
- Lawsuit Filed: December 31, 2024
- Trial Date: March 9, 2026
- Defendants: Justin Baldoni, Wayfarer Studios, execs
- Claims: Sexual harassment, retaliation, emotional distress
- Total Value in Dispute: Over $400 million
- Current Issue: Emotional distress claim status & medical record requests
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