According to a source, Blake Lively's legal battle with Justin Baldoni is taking an emotional toll on the actress. The latest setback in Lively's case - the dismissal of the bulk of her claims against her "It Ends with Us" director-costar on Thursday, April 2 - has been emotionally taxing for the 38-year-old actress-producer, a source tells PEOPLE.
"She didn't file this lawsuit thinking it would be easy," the insider says of Lively, who first filed a sexual harassment complaint against Baldoni in December 2024. In the filing, Lively alleged misconduct on the set of the Colleen Hoover adaptation and a retaliatory smear campaign, which Baldoni has denied.
"She knew it would be a long, challenging process, but she felt it was something she needed to do," the source says of Lively. "The legal battle has been emotionally taxing, but Blake has stayed focused."
The Gossip Girl alum's allegations have "never changed and she's looking forward to her day in court," the source continues, adding, "She's balancing this with all her responsibilities at home. As a mom, she has many other priorities which help her stay grounded."
The insider adds that the mom of four - who shares daughters James, 11, Inez, 9, and Betty, 6, and son Olin, 3, with husband Ryan Reynolds - is "excited for some quiet time this summer with her family once this is behind her."
The new insight into Lively's mindset amid her legal battle with Baldoni comes shortly after the actress shared a message for her fans and followers ahead of the former costars' high-profile trial.
"I will never stop doing my part in fighting to expose the systems and people who seek to harm, shame, silence and retaliate against victims," Lively wrote in a statement on Instagram Stories on Friday, April 3. "I know it's a privilege to be able to stand up. I will not waste it," Lively said, adding a dragon emoji - a possible reference to the alleged texts she sent comparing herself to Game of Thrones character Khaleesi and calling Reynolds, 49, and friend Taylor Swift her dragons, per Baldoni's January 2025 countersuit against her. (That lawsuit, involving allegations of extortion and defamation, was dismissed in June 2025, with Baldoni's legal team opting not to refile amended versions of the claims.)
Lively also shared her attorney Michael Gottlieb's earlier statement reacting to Thursday's dismissal. On April 2, federal judge Lewis J. Liman threw out 10 of Lively's 13 claims against Baldoni, including those relating to harassment, defamation and conspiracy. A narrower set of allegations, including breach of contract and the retaliation claim against Baldoni's company Wayfarer Studios, will proceed to trial.
Referring to the Thursday setback, Lively continued in part: "I'm grateful for the Court's ruling which allows the heart of my case to be presented to a jury next month, and for the ability to finally tell my story in full at trial, for my own sake, but also for those who don't have the same opportunity... many of whom I have known and loved deeply in my life, and the countless I'll never know."
Elsewhere in her statement, the star encouraged fans not to "be distracted by the digital soap opera," adding that "the physical pain from digital violence is very real. It is abuse. And it's everywhere... my claims won't be the first or last time you'll see examples of the extreme dangers of retaliation and digital warfare."
Baldoni's legal team reacted to the latest development on April 2, saying in a statement: "We’re very pleased the Court dismissed all sexual harassment claims and every claim brought against the individual defendants: Justin Baldoni, Jamey Heath, Steve Sarowitz, Melissa Nathan, and Jennifer Abel."
"These were very serious allegations, and we are grateful to the Court for its careful review of the facts, law and voluminous evidence that was provided," the statement concluded. "What’s left is a significantly narrowed case, and we look forward to presenting our defense to the remaining claims in court."
Judge Liman’s latest ruling follows a Feb. 11 court-mandated settlement conference with Baldoni and Lively, which ended without an agreement. Attorneys for both stars have stated that they plan to testify during the trial, which is scheduled to begin on May 18 in New York.
