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Why WME Dropped Justin Baldoni After Blake Lively’s Complaint—and What Happened Next

WME dropped Justin Baldoni a day after Blake Lively filed a complaint alleging harassment and retaliation. The later dismissal rested on employee-status grounds, and the parties settled before trial.
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WME dropped Justin Baldoni as a client on December 21, 2024, one day after Blake Lively filed a California Civil Rights Department complaint alleging sexual harassment and retaliation connected to the film It Ends With Us. The agency split was reported at the time by TheWrap; it had not immediately responded to the outlet’s request for comment, so WME’s reason was not publicly confirmed in that report. The allegations were disputed, and the case later ended without a trial or a court finding that the alleged harassment did or did not occur.

Why did WME drop Justin Baldoni?

TheWrap reported on December 21, 2024, that the talent agency had dropped Baldoni as a client, the day after Lively filed her complaint. TheWrap said WME had not immediately responded to its request for comment. The timing was reported; the agency did not publicly confirm a reason in that account. (TheWrap)

What did Blake Lively allege?

Lively’s complaint alleged sexual harassment and unwanted behavior during production of It Ends With Us, as well as retaliation intended to damage her reputation after she raised concerns. The Associated Press reported that her complaint described a proposed effort to seed online theories, organize a social-media campaign and place negative stories. These were claims in Lively’s complaint, not findings established by a court. (Associated Press)

Workplace demands described in the complaint

AP reported that Lively’s complaint listed 30 demands following a meeting about her concerns. Examples included an intimacy coordinator for scenes with Baldoni, no entry into her trailer while she was undressed, limits on discussions of pornography and sexual experiences, and no improvised kissing or additional sex scenes beyond the script she had approved. These were described as demands she said were agreed to; they should not be treated as independent findings about what had happened earlier. (Associated Press)

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How did Baldoni respond?

Baldoni’s attorney, Bryan Freedman, rejected Lively’s allegations, describing them as “completely false, outrageous and intentionally salacious,” according to AP. Freedman also said the studio hired a crisis manager in response to Lively’s demands and threats. Those statements represent Baldoni’s side of the dispute, just as the complaint represents Lively’s allegations. (Associated Press)

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What happened to the lawsuit?

Date Development
December 20, 2024 Lively filed a complaint with the California Civil Rights Department, according to AP’s contemporaneous report.
December 21, 2024 TheWrap reported WME had dropped Baldoni as a client.
April 2, 2026 U.S. District Judge Lewis J. Liman dismissed Lively’s sexual-harassment claims on employee-status grounds. The order granted judgment to the Wayfarer parties on most claims and left specified retaliation and contract-related claims at that procedural stage.
Early May 2026 Lively and Baldoni settled before trial.
August 26, 2026 The judge awarded Lively $363,245 in attorney fees and $44,206 in costs related to defending against defamation claims.

What the 2026 dismissal did—and did not—decide

Judge Liman ruled that Lively was an independent contractor, rather than an employee, for the relevant employment claims. That legal eligibility ruling was not a finding that the alleged conduct occurred, nor a finding that it did not occur. The case settled before trial, so the allegations were not resolved through a trial verdict. (April 2, 2026 court order; Associated Press)

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Settlement and later fee award

The parties settled in early May 2026. Their joint statement said Lively’s concerns “deserved to be heard” and that they “remain firmly committed to workplaces free of improprieties and unproductive environments.” The settlement statement was not an admission or a judicial finding. (Associated Press)

On August 26, Judge Liman awarded Lively $363,245 in attorney fees and $44,206 in costs—$407,451 total—tied to her defense against defamation claims. AP reported the award was just over $400,000 of roughly $8 million sought. It was a limited fee-and-cost award, not a verdict on the harassment allegations. (Associated Press)

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How to understand the outcome

  • Agency action: WME’s client split was reported the day after Lively filed her complaint; the cited account did not include a public explanation from the agency.
  • Allegations and denial: Lively made allegations in a complaint, and Baldoni denied them through his attorney.
  • Court ruling: The sexual-harassment claims were dismissed on employee-status grounds, not after a factual determination about whether the alleged conduct happened.
  • End of case: The parties settled before trial; the later fee award concerned costs of defending defamation claims and did not decide the underlying harassment allegations.

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