A new audio recording has emerged in the legal feud between Blake Lively and Justin Baldoni, with Baldoni’s business partner dismissing Lively’s allegations as “manufactured” in a secretly taped phone call. This development adds fuel to the ongoing dispute that originated from accusations of misconduct during the production of their film “It Ends With Us.”
The recording, filed by Lively’s attorneys in court documents, features Steve Sarowitz, co-founder of Wayfarer Studios, which Baldoni helms. In the call, Sarowitz asserts that the accusations were “made up on purpose to take Justin down” and describes the set of “It Ends With Us” as the worst Baldoni has ever experienced, despite his usual record of smooth productions. Claire Ayoub, a filmmaker who worked with Baldoni on “Empire Waist,” recorded the conversation, citing fears of pressure from Sarowitz regarding Baldoni after she had reported negative interactions with the actor.
This incident is part of a broader legal battle that began in late 2024 when Lively filed a complaint with the California Civil Rights Department, accusing Baldoni of sexual harassment on the set of “It Ends With Us.” She later escalated the matter with a lawsuit alleging that Baldoni and Wayfarer Studios orchestrated a smear campaign against her, claims that Baldoni has consistently denied through his attorney, Bryan Freedman, who called the allegations “categorically false.”
Lively’s lawsuit detailed experiences of “severe emotional distress” from the alleged harassment and retaliation, though she voluntarily withdrew those specific claims in May 2025 to streamline the litigation. A U.S. District Judge ruled that she could not present evidence of emotional distress at trial but left open the possibility for her to pursue damages through other claims, such as sexual harassment and retaliation. This move was met with a motion from Baldoni’s team to compel her medical records, which Lively’s lawyers labeled a “public relations stunt.”
In response, Baldoni filed a countersuit against Lively, her husband Ryan Reynolds, and their publicist, alleging extortion, defamation, and damage to his reputation. He claimed that Lively had robbed him of control over “It Ends With Us” and that Reynolds had pressured his agent to drop him, further complicating the legal landscape. Lively’s legal team countered by calling the lawsuit “another chapter in the abuser playbook,” reflecting the intensely personal nature of the conflict.
The case is set to proceed in U.S. District Court for the Southern District of New York, with a trial scheduled for March 2026 before Judge Lewis Liman. Both parties are expected to continue litigating multiple claims, including sexual harassment and retaliation, with the newly revealed recording likely to play a role in proceedings. The ongoing disputes have drawn significant media attention, highlighting issues of power dynamics and accountability in the entertainment industry.
As the legal drama unfolds, the recording underscores the deepening rift between the former co-stars and their associates. The outcome could have implications for how similar allegations are handled in Hollywood, emphasizing the importance of transparency and due process in high-profile cases.