Attorneys representing Justin Baldoni have firmly stated that he should not be held responsible for any financial setbacks experienced by Blake Lively, arguing that her past business failures have contributed to her current challenges. They describe Lively as someone with a history of unsuccessful ventures and claim her reputation as a ‘bully’ has played a significant role in her difficulties.

At a pre-trial hearing on Tuesday, Baldoni’s legal team contended that Lively’s previous business endeavors, including her beverage line Betty Buzz, did not succeed due to her alleged unpopularity. This, they argued, is unrelated to the alleged smear campaign she claims Baldoni orchestrated against her.

Both Baldoni and Lively are preparing for a court showdown scheduled for May 18. The trial will address their professional fallout following the production of their film “It Ends With Us,” as well as accusations concerning reputational harm and financial losses.

In their defense, Baldoni’s lawyers have highlighted Lively’s public comments about Kate Middleton, suggesting that these incidents illustrate a pattern of behavior that predated the upcoming 2024 film release.

The legal team referenced a situation where Lively, at age 38, poked fun at the Princess of Wales by mocking an edited family photo that had been digitally altered. This incident captured global attention in March 2024.

Lively humorously responded to the controversy by posting a blatantly Photoshopped image of herself, featuring exaggerated elements like an oversized thumb, a chair split in two, and a lemon hovering above her head.

Blake Lively and Justin Baldoni’s legal battle returned to court Tuesday for a pre-trial hearing

The actress claims to have suffered financial losses after claiming he sexually harassed her on the set and retaliated against her with a smear campaign. Baldoni denies the allegations

A few days later, Kate revealed she had been diagnosed with cancer, forcing an apology from Lively. 

The judge is weighing whether to unseal key pieces of evidence currently hidden from public view, as well as whether to impose time limits on the trial, now just weeks away. 

Lively claims Baldoni sexually harassed her on the set of the 2024 film and retaliated against her with a smear campaign. 

Her team alleged that she lost tens of millions in endorsements on top of nine-figure hits to her earnings and profits – figures Baldoni’s side has dismissed as wildly inflated. 

His attorney, Amir Kaltgrad, argued that the numbers were ‘pie in the sky,’ broken down as: $143 million in lost profits, $132 million in lost earnings and several million more for lost endorsements.

He claimed the calculations from her experts about her lost earnings were speculative.

One of them made an ‘unrealistic assumption’ about how much work Lively would do in the years after It Ends With Us, he told the court. 

Baldoni’s attorneys argued that Lively herself is responsible for her downfall and say her failed business ventures – such as her alcoholic drinks line Betty Booze – are a result of her unpopularity

Kaltgrad noted that Lively only earned $21 million from four film projects in the eight years leading up to the release of the 2024 movie.

Yet Lively’s expert Richard Marks, a lawyer who works in the entertainment industry, estimated that she would have earned $142 million in the five years after the film, just based on her acting.

Kaltgrad argued Lively had a ‘scattered work history’ and claimed there was ‘evidence she didn’t want to work full time.’ 

‘Yet Mr Marks has opined she’s going to be working day and night,’ Kaltgrad said.

‘He has a 600 percent increase in her earnings between $21 million she made and $142 million she’s going to make.’ 

Kaltgrad said that in one case, it was Lively’s business decisions that caused her economic harm, not Baldoni.

He claimed her non-alcoholic drinks line Betty Buzz ‘did not succeed for nothing to do with the defendants,’ pointing out that that her own accountant, Jeffrey Kinrich, said as much.

In a court filing last week, Lively herself admitted that the brand was failing.

In 2024, Lively shared a distorted, edited photo promoting her new line of drinks, intended to mock Kate Middleton, who at the time had shared an edited family photograph that was later revealed to have been digitally altered. The actress later apologized

The latest clash comes ahead of a high-stakes trial between the co-stars turned nemeses, set to begin on May 18, where both sides are expected to battle over the fallout from their 2024 movie, It Ends With Us 

She admitted that Jeffrey Kinrich, a certified public accountant whom she hopes will testify about her lost income, did not calculate damages from Betty Buzz.

According to a court filing, ‘management had doubts about the profitability and sustainability of Betty Buzz for reasons unrelated to the online manipulation.’ 

Lively admitted that management for the brand said that her spirits-based drinks were ‘demonstrating explosive growth.’

But it would be ‘difficult’ for Betty Buzz to ‘gain real profitability in the US,’ the filing stated.

As a result, management chose to focus on Betty Booze, her alcoholic drinks brand, as the ‘anchor product.’

The Betty Buzz website is still operational and customers can still pay $34.99 for 12 cans of sparkling grapefruit drink.

US District Judge Lewis Liman listens to arguments on whether the Baldoni/Lively case should continue during a pretrial hearing in New York City in January

Another of Baldoni’s lawyers, Fabien Manohar Thayamballi, disputed the claim from Lively that online comments calling her a bully were solely the result of digital manipulation.

The attorney noted Lively had been mean herself, including ‘bullying’ the Princess of Wales in 2024.

Speaking outside court, Lively’s lawyer Sigrid McCawley poured cold water on the prospect of any last-minute settlement.

She said: ‘Blake’s hope is to be able to have her voice heard in that courtroom and that’s what we’re focused on right now’.

McCawley said that Lively would testify and was ‘expecting to take the stand’. 

‘Blake’s been ready for this trial, it’s a moment she’s been waiting for a long time, to have her voice heard in this court,’ she said.

‘She’s feeling really good…she’s finally at a point where she will be able to tell her side.’

Asked about whether the celebrities who have been named in court documents, such as Taylor Swift and Ben Affleck, might testify, McCawley said that Lively did not want that.

She said: ‘Blake has really tried ferociously to protect her friends…this is really about her and what she experienced. That’s what the case is going to center on.’ 

Both Lively and Baldoni have denied any wrongdoing.