In a stunning new twist that has Hollywood insiders buzzing with schadenfreude, Blake Lively has been dealt yet another humiliating legal setback in her aggressive campaign to make Justin Baldoni and his Wayfarer Studios foot the bill for her skyrocketing legal costs — this coming mere days after the pair reached a headline-grabbing settlement that handed her zero dollars in damages.

The Gossip Girl actress, who once demanded a staggering $300 million from her It Ends With Us co-star and director, now finds herself repeatedly slapped down by the courts as she clings to a narrow California law in hopes of recovering what sources say could be tens of millions in attorney fees. But with a judge just rejecting her latest request for extra arguments, Lively’s high-stakes gamble appears to be crumbling faster than her once-golden public image.

The bitter feud that exploded into one of Hollywood’s messiest scandals in years has left both stars bloodied, reputations in tatters, and wallets dramatically lighter — with combined legal bills reportedly soaring toward $60 million. Yet in the latest courtroom drama, Baldoni’s team is fighting tooth and nail to ensure Lively walks away with nothing but the bitter taste of defeat.

It all stems from the explosive on-set allegations during the making of It Ends With Us, the 2024 romantic drama based on Colleen Hoover’s bestseller. Lively accused Baldoni of sexual harassment and orchestrating a vicious “smear campaign” designed to destroy her reputation after she spoke out. Baldoni fired back with a $400 million defamation countersuit, claiming Lively tried to hijack the film and ruin him. The war of words and filings dragged on for nearly 18 months, turning what should have been a feel-good domestic violence awareness movie into pure tabloid poison.

Then, in a dramatic last-minute twist just two weeks before trial was set to begin in May 2026, the warring parties announced a surprise settlement. Both sides claimed victory. Lively’s team called it a “resounding victory,” pointing to Baldoni’s decision to drop his countersuit and waive appeal rights. Baldoni’s camp countered that it was a “total victory” because Lively agreed to dismiss her remaining claims with no financial payout whatsoever from Wayfarer Studios. No apology. No admission of guilt. Just a joint statement praising the film’s message and committing to safer workplaces.

But the fight was far from over.

Lively immediately pivoted to a separate legal weapon: a motion under California Civil Code Section 47.1 — a relatively new law designed to protect people who make sexual misconduct allegations from retaliatory defamation lawsuits. She is now aggressively pursuing attorneys’ fees, costs, and potentially massive additional damages from Baldoni and his team, arguing their countersuit was baseless and punitive. Legal experts say the potential bill could run into seven or even eight figures if she succeeds.

Baldoni’s lawyers have hit back hard. In fresh filings, they urged the judge to shut down any further proceedings on Lively’s fee request, calling her continued demands “more nonsense” and accusing her side of trying to prolong the agony after already walking away with nothing. And on Friday, the judge delivered a fresh blow: rejecting Lively’s request to file additional briefs and arguments before ruling on the fees issue.

This latest rejection marks yet another legal defeat for the 38-year-old star, who has watched the majority of her original claims — including the core sexual harassment allegations — get dismissed in court earlier this year. Insiders say the pattern is clear: while Lively scored some public relations points and forced a settlement, the courtroom scorecard heavily favors Baldoni’s side.

The financial toll on both sides has been staggering. Reports suggest the combined legal war chest drained tens of millions, with some estimates putting Lively’s own costs in the $30-60 million range. For an actress whose career was already taking hits from the negative publicity surrounding the film’s promotion — remember the awkward press tour and viral backlash? — the inability to recoup those fees could sting for years.

Friends of Lively insist she is fighting not just for herself but for every woman who fears retaliation for speaking out. Her attorney Sigrid McCawley has framed the fees motion as an act of advocacy, giving Lively a platform to stand up against what she sees as weaponized litigation. Lively herself made a high-profile appearance at the 2026 Met Gala on the very day the settlement was announced, sending a clear message: she is moving forward, head held high, in designer armor.

But Baldoni’s camp sees it differently. They argue Lively’s continued pursuit is nothing more than sour grapes after her bigger claims collapsed. By waiving appeal rights on the fees motion as part of the settlement, Baldoni has essentially rolled the dice — betting the court will not award Lively the massive payout she is now chasing.

The public fallout has been brutal for both. Lively went from America’s sweetheart to one of the most polarizing figures in entertainment, with her every move scrutinized and memed. Baldoni’s directing and acting prospects took a major hit as the allegations dominated headlines for months. The movie itself, despite solid box office, became forever tainted by the behind-the-scenes chaos.

As the judge prepares to make a final call on the remaining fees motion, Hollywood is watching closely. Will Lively score a last-minute financial win that lets her claim moral and monetary victory? Or will this latest courtroom slap become the final nail in a saga that has already cost her dearly in reputation, momentum, and millions?

For now, one thing is crystal clear: what began as a battle over on-set behavior and smear campaigns has devolved into a brutal, expensive game of financial chicken. Blake Lively entered the ring swinging for $300 million. She settled for zero — and is now fighting desperately not to leave the arena even deeper in the red.

The ironies pile up. A film meant to highlight domestic violence and empowerment became the backdrop for one of the nastiest celebrity feuds in recent memory. Two stars who once shared red carpets and promotional smiles now communicate only through lawyers. And in the end, the biggest winners may not be either of them — but the armies of attorneys who cashed in on their very public pain.

As Blake Lively licks her wounds from this latest legal blow, the question hanging over Hollywood is whether she will finally walk away — or keep fighting a battle that, so far, has delivered far more losses than wins.

In Tinseltown, where image is everything and money talks loudest, this settlement that wasn’t really a settlement may end up costing everyone involved far more than anyone imagined when the cameras first rolled on It Ends With Us.