Blake Lively and Justin Baldoni’s legal fight may be settled, but one brutal courtroom detail still has legs. Before the case ended, Baldoni’s lawyers reportedly used Lively’s Kate Middleton joke to challenge her damages claims. They argued her own public image hurt her brands, not Baldoni’s alleged conduct. The move turned an old Instagram misstep into fresh legal ammunition.
Blake Lively Joke Gets Dragged Into Court
The dispute came from their fallout over It Ends With Us, the 2024 film based on Colleen Hoover’s novel. Lively accused Baldoni of misconduct and retaliation tied to the movie’s release. Baldoni denied the claims and countersued, while both sides fought over reputation, money and public image. The case reached a settlement in May 2026, according to AP.
Before that settlement, Baldoni’s side reportedly argued Lively’s businesses had other problems. TMZ reported his lawyers pointed to consumer perception and called her “unlikable” to some buyers. They also cited her Betty Buzz and Betty Booze brands. Their message was blunt: Lively’s brand damage was not all on Baldoni.
Kate Middleton Post Becomes Legal Fuel
One example was Lively’s 2024 post during the Kate Middleton photo-editing frenzy. At the time, Lively promoted her drinks with a deliberately edited image. The post appeared before the Princess of Wales publicly shared her cancer diagnosis. Lively later apologized and said the joke left her “mortified.”
Baldoni’s legal team reportedly framed that episode as proof Lively harmed her own public standing. Extra reported that his side called the post “bullying” during arguments over her brand losses. That framing gave the old controversy a second life. It also shifted attention from the film dispute to Lively’s public judgment.
It Ends With Us Fight Finally Settles
The broader legal war has already changed since that courtroom exchange. ABC News reported that a judge dismissed Baldoni’s lawsuit in June 2025. The judge later narrowed Lively’s case in April 2026. Both sides then reached a settlement announced by their legal teams in May 2026.
Entertainment Weekly reported that Baldoni’s lawyer addressed claims about the settlement terms afterward. He said the result was a logical ending, not a simple win-or-lose moment. Lively’s team has not made the same kind of public victory lap. Still, the settlement closed a bitter chapter that shadowed both stars.
The Kate Middleton argument shows why this case held attention beyond Hollywood contracts. It mixed workplace claims, online backlash, celebrity brands and one badly timed post. Even with the dispute settled, that detail remains sticky. For Lively, it proves how long a social-media mistake can follow a star.
