Blake Lively was spotted in New York City this Tuesday shortly after a judge limited the legal fees she could recover from former co-star Justin Baldoni. The appearance follows a social media jab from Candace Owens involving the actor and a Taylor Swift song.

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The $8 Million Request and the $407,000 Reality

A New York judge has delivered a significant financial blow to Blake Lively, awarding her only a small portion of the legal costs she sought to recoup. According to the report, Judge Lewis Liman ordered that Lively receive $363,245.40 in attorneys' fees and $44,206.35 in costs. This total represents roughly five percent of the $8 million Lively had attempted to claim for her defense against a massive defamation suit.

Judge Lewis Liman noted that the billing hours submitted by Lively's legal team were unreasonable and highlighted several discrepancies in the expenses she sought to recover. This ruling serves as a stark conclusion to the financial disputes following a bitter legal battle between the It Ends With Us co-stars.

From a $400 Million Defamation Suit to a Quiet Settlement

The current fee dispute is the final echo of a volatile legal cycle that began in December 2024. As the report says, Blake Lively originally sued Justin Baldoni and his production company, Wayfarer Studios,alleging defamation and sexual harassment on the set of their film. Baldoni responded the following month with a $400 million defamation lawsuit targeting Lively, her husband Ryan Reynolds, and the New York Times.

The legal fireworks eventually fizzled out in the courtroom. A judge dismissed Baldoni's defamation case in October of the previous year, and by May, most of Lively's sexual harassment claims were also thrown out. the two parties eventually agreed to settle their primary claims with no money exchanging hands, leaving only the dispute over legal fees for Judge Liman to resolve.

Candace Owens and the "My Tears Ricochet" Jab

While Lively dealt with the courtroom fallout,political commentator Candace Owens used a chance encounter in Iceland to fuel the public fire. Owens posted a selfie with Justin Baldoni, using the hashtag #Cousins to signal her support for the actor. The post was accompanied by the Taylor Swift track "My Tears Ricochet," a song featured in It Ends With Us.

The choice of music was widely viewed as a calculated strike against Lively, given the well-documented and high-profile falling out between Blake Lively and Taylor Swift. Social media observers noted that Owens was being "messy" by leveraging the Swift connection to troll Lively during a period of legal vulnerability.

A $6,700 Chanel Bag Amidst Legal Setbacks

Despite the legal setbacks and social media trolling,Blake Lively maintained a high-fashion presence during her Tuesday outing in Manhattan. She was seen delivering coffee to Ryan Reynolds while wearing $950 mesh Marcy ballet flats by Khaite and a burgundy suede Chanel bucket bag from the Fall/Winter 2026 pre-collection , which retails for $6,700.

The public appearance contrasted with the solo outing of Ryan Reynolds , who attended the premiere of his comedy film Mayday at AMC Lincoln Square.. Reynolds was joined by Sir Kenneth Branagh and Maria Bakalova, while Lively remained absent from the red carpet event.

The Silence of Wayfarer Studios and Ryan Reynolds

Despite the detailed court rulings, several elements of this saga remain opaque. It is unclear if the settlement between Blake Lively and Justin Baldoni included a non-disclosure agreement that prevents further comments on the set of It Ends With Us. Furthermore, while Wayfarer Studios was named in the original suit, the production company has remained silent regarding the judge's findings on "unreasonable" legal billing.