Blake Lively’s Lawyer Defends Her Met Gala Return After Baldoni Settlement

Blake Lively showed up to the 2026 Met Gala in an archival Atelier Versace gown dripping in custom Lorraine Schwartz diamonds — and she did it the same day she settled one of the messiest celebrity lawsuits in recent memory. Now, her lawyer is explaining exactly why.

Attorney Sigrid McCawley addressed the timing directly in a video interview with Entertainment Tonight on Thursday, May 7, pushing back on the idea that the appearance was a calculated PR move. “Blake is focused on exposing the digital retaliation campaign here that was weaponized against her,” McCawley said. “As part of that, it’s about standing up and not being silenced, right? Moving on with your life, moving forward, and that’s exactly what Blake is intent on doing. She was incredibly brave to stand up for herself in that moment and for others in the workplace and she’s going to continue to pave that path of being really bold and brave in this moment.”

Lively, 38, and Justin Baldoni, 42, announced their settlement on May 4 — two weeks before their case was set to go to trial on May 18. The dispute had been building since December 2024, when Lively sued Baldoni and his production company Wayfarer Studios, accusing him of sexual harassment on the set of their 2024 film It Ends With Us, as well as orchestrating a smear campaign against her after she raised those concerns. Baldoni denied the allegations and filed a $400 million defamation countersuit against Lively and her husband, Ryan Reynolds — a suit that was dismissed entirely by Judge Lewis J. Liman in June 2025. Last month, the judge also dismissed 10 of Lively’s original 13 claims, including every sexual harassment charge, classifying her as an independent contractor rather than an employee during filming.

The joint statement released by both sides struck a measured tone after nearly two years of open warfare. “The end product — the movie It Ends With Us — is a source of pride to all of us who worked to bring it to life,” it read. “We acknowledge the process presented challenges and recognize concerns raised by Ms. Lively deserved to be heard. We remain firmly committed to workplaces free of improprieties and unproductive environments.”

Both Sides Are Claiming the Win

The ink wasn’t even dry before both legal teams were racing to frame the outcome on their own terms.

Lively’s attorneys Michael Gottlieb and Esra Hudson called it “a resounding victory,” pointing to the fact that Baldoni and the Wayfarer parties waived their right to appeal and acknowledged that Lively’s concerns “deserved to be heard.” “By admitting that Ms. Lively’s concerns ‘deserved to be heard,’ the defendants have ended once and for all the fiction that Ms. Lively ‘fabricated’ claims of sexual harassment and retaliation,” they said in a statement. “From day one, Blake Lively’s mission was clear: expose and hold accountable those who weaponize smear campaigns and retaliatory lawsuits to intimidate and silence survivors. That mission continues.”

Baldoni’s attorney Bryan Freedman wasn’t having it. In a statement, he said the settlement was “a win and total victory” for the Wayfarer parties, noting that the court had already thrown out 10 of Lively’s 13 claims before she “voluntarily dismissed the rest.” “In our view, they settled because they knew they were going to lose in court,” Freedman said.

Then Freedman went further — significantly further. Speaking to TMZ, he claimed the real reason Lively settled was fear. “Part of the reason Blake settled is because she was scared to take the witness stand at trial. She did not want to face cross-examination by anyone because that would require her to tell the truth,” he said. He alleged she lied about instructing Sony to destroy the dailies and lied about telling It Ends With Us author Colleen Hoover to unfollow Baldoni — a claim he said Hoover herself confirmed in her deposition. “Bottom line,” he added, “Blake filed a claim for $300 million and she ended up with nothing. If this is a resounding victory, what does a defeat look like?”

Lively’s team fired back in four words: “I guess he’s no longer ‘ecstatic’ about the settlement” — a pointed reference to comments Freedman had made earlier praising the deal.

In a separate Entertainment Tonight interview, Freedman was asked about Lively’s subsequent move to seek additional damages and didn’t hold back. “I think it’s impossible for Ms. Lively to take responsibility for any part of her actions,” he said. “If one can’t see themselves, one can’t honestly, realistically, look at their part in things, it makes for a troubled existence.”

Baldoni himself confirmed he did not sign a nondisclosure agreement as part of the settlement — a detail that leaves the door open for him to speak publicly. According to insiders, he’s already planning a major sit-down interview and is allegedly working on a book about what happened behind the scenes during the production. He has also relocated from California to Nashville with his wife Emily and their children.

The Legal Battle Has a Round Two

Despite the settlement announcement, this case is not over.

Court documents filed May 7 show Lively is now pursuing damages and attorneys’ fees under California Civil Code Section 47.1 — a 2023 law passed in the wake of the #MeToo movement specifically designed to protect sexual misconduct accusers from retaliatory defamation lawsuits. Because Baldoni’s $400 million countersuit against her was dismissed, Lively’s team argues she qualifies as the “prevailing defendant” and is entitled to compensatory damages tripled, punitive damages, and legal fees.

“What this law does is it focuses on providing survivors with a path to be able to not be silenced, to go back after the person who wrongfully sues them for defamation,” McCawley explained to ET. Her team also addressed the widely reported claim that the two sides collectively spent around $60 million — with some insiders putting the real figure north of $100 million — on the litigation. “Certainly any battle like this is expensive. And that’s why laws like the law that’s been passed in California that she’s proceeding under are so important,” McCawley said. “Most people can’t afford to undertake this kind of significant battle. She knows that that’s a privilege.”

Freedman called the damages request “more nonsense” and indicated Baldoni won’t be writing a check voluntarily. “We’ll see how the judge rules on that,” he said. Both parties have waived the right to appeal that specific ruling once it’s issued, meaning whatever the judge decides is final.

Sexual harassment attorney Megan Thomas, who was not involved in the case, offered some outside perspective on what the settlement actually means. “After a settlement involving celebrities, the public often thinks one party received a large sum of money or a party settled because they had a weak case. This is often not the reality,” she told OK Magazine. “In a case like this, we have two monied parties, so reputation takes precedence over a monetary settlement.” Thomas noted the carefully worded joint statement — particularly the acknowledgment that Lively’s concerns “deserved to be heard” — likely reflects a negotiated reputational outcome for the actress.

The Met Gala Return — and the Messy Road to Get There

Lively’s appearance at the Met Gala was striking on its own. She last attended in 2022, when she co-chaired alongside Ryan Reynolds, Regina King, and Lin-Manuel Miranda. This year she came solo, seated at Anna Wintour’s table inside the Metropolitan Museum of Art, wearing the spring 2006 Versace archival gown she’d reportedly had ready ahead of time.

But getting through the door wasn’t as seamless as it looked. According to reporting from Rob Shuter’s Naughty But Nice Substack, several prominent fashion houses declined to dress her for the event, with insiders citing concerns about brand association. “This wasn’t about designers being afraid of looking mean,” one source said. “It was about not wanting to look like they were backing a mean girl.” Another added, “Blake’s brand has absolutely collapsed in certain fashion circles. A few years ago, having Blake wear your gown was considered a huge win. Now some designers think it hurts more than it helps.”

Wintour reportedly stepped in personally, reassuring designers that Lively remained in good standing within the fashion world and urging them not to distance themselves from her. “Once Anna publicly backed Blake, the resistance softened immediately,” a source said. “Without her, Blake probably doesn’t get through the door in the same way.”

Once she was there, her interaction with the team managing her 13-foot train went viral — and not entirely in her favor. A clip showed Lively directing handlers on how to arrange the gown on the steps, and viewers were sharply divided. Body language expert Dr. Lillian Glass was blunt in her assessment: “Her appearance at the Met Gala did her more damage as she angrily admonished the gentlemen who were helping her with her gown on the steps. It reinforced that she was indeed the ‘mean girl’ that people perceived her as throughout the lawsuit.” Supporters, meanwhile, called it nothing more than a woman directing her own event styling.

Ryan Reynolds, the Marriage Rumors, and Taylor Swift

The day after the settlement was announced, Reynolds posted a selfie with Lively on his Instagram Story — the two leaning into each other, Lively’s hand in his hair, both smiling. He set it to Millie Jackson’s “Here You Come Again.” It was quiet, but it landed.

The post came amid swirling reports that strain in their marriage had played a role in Lively’s decision to settle. An insider told Rob Shuter’s Substack: “The realization hit her all at once. She had already lost too much — professionally, personally, publicly. The one thing she refused to lose was her marriage.” Reynolds’s team has not commented on those claims.

Then there’s Taylor Swift. The friendship between Lively and the pop star became strained after Swift was name-dropped repeatedly in court documents — including text messages in which Lively referenced having “a few dragons” who would defend her, widely understood as a nod to Swift and Reynolds. Unsealed texts also showed Swift agreeing to hype changes Lively made to the It Ends With Us script “even without reading it” and calling Baldoni a “b-tch.” Swift’s representatives maintained she had no involvement with the film beyond licensing one of her songs.

According to sources close to the situation, Lively is optimistic the friendship can be repaired now that the legal chaos has settled. “Blake genuinely believes there’s still a path back,” one insider told Shuter’s Substack. “Now that the legal mess is over, she thinks the hardest part is behind her, and there’s real hope they can move forward.” She’s reportedly so confident that she already has a dress picked out for Swift’s anticipated wedding to Travis Kelce.

Sources close to Swift, however, suggest the singer isn’t there yet — and may not be inviting the Livelys at all. “They’re not invited. Period,” one source told Shuter. “Taylor wants a drama-free day and no longer trusts Blake or Ryan.” Swift has stayed publicly silent on all of it.

Baldoni’s friend and It Ends With Us co-star Adam Mondschein, speaking to Us Weekly, captured the mood on his side of the aisle: “It’s the bittersweetness of having this part of it let go. It’s a conflicted time. It feels like that, but the game’s not over.”

He’s probably right about that.