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Justin Baldoni, actor-director and co-founder of Wayfarer Studios, is once again making headlines — but not for his work on screen.

 In another dramatic legal twist, Baldoni and his billionaire business partner Steve Sarowitz have filed suit against several major insurance companies, accusing them of refusing to honor coverage. The initial lawsuit is a high-stakes sexual harassment and defamation case brought by Blake Lively.

All the litigation stems from allegations tied to the production of the 2024 film It Ends with Us.

Allegations of a $100 Million Vendetta

The newly filed lawsuit in California state court centers on claims that Baldoni and Sarowitz allegedly vowed to “spend up to $100 million to ruin” Lively following a bitter falling-out over events on the film set.

The It Ends with Us co-star and director were once seen as creative collaborators but now find themselves on opposite sides of a heated legal and media battle.

The insurance companies being targeted include New York Marine and General Insurance Company, QBE Insurance Corporation, and Lloyd’s of London.

According to the filing, these insurers sold policies promising to defend and indemnify Baldoni, Sarowitz, Wayfarer, and other entities against defamation lawsuits — coverage that the plaintiffs say has now been wrongfully denied.

“The Insurers ignored their duty to defend… They then denied coverage, breaching their duties,” the lawsuit alleges.
— Excerpt from the July 30 L.A. Superior Court filing

📄 Read more at Yahoo
📄 Coverage via Deadline – July 2025
📄 Insurance Lawsuit Details – August 2025

Blake Lively vs Justin Baldoni Lawsuit and Insurance Fallout

Lively’s lawsuit, filed in December 2024, accuses Baldoni and others of defamation, sexual harassment, and retaliation. Despite It Ends with Us grossing $351 million globally, the film’s off-screen controversies have cast a long shadow.

As legal costs mount, Wayfarer and its partners say they’ve been forced to cover defense costs out of pocket, arguing the insurers have refused to step up.

Adding to their legal woes, Harco National Insurance Company filed a separate lawsuit in federal court on July 21, seeking a declaratory judgment that it has no obligation to defend or indemnify Baldoni’s team.

Harco alleges Wayfarer failed to disclose prior complaints of sexual harassment during the film’s pre-production and production — a potential breach of policy terms.

“We’ve been paying for the defense… We are entitled to be reimbursed,” the complaint states.

Hollywood Power Struggle Heads to Court

This tangled web of lawsuits, denials, and counterclaims is set to culminate in a major courtroom showdown.

Baldoni’s own $400 million lawsuit against Lively, Ryan Reynolds, the New York Times, and others was dismissed in June, leaving his team increasingly reliant on insurance recovery to fund their ongoing defense.

Judge Lewis Liman is scheduled to preside over the core claims in the case between Lively and Baldoni on March 9, 2026, in an East Coast federal courtroom. Whether the new insurance claims will be resolved by then remains uncertain.

As of now, representatives for Baldoni, Wayfarer, New York Marine, and Lively’s legal team have all declined to comment on the ongoing litigation.