Baldoni's team confirmed in a recent filing that Lively aims to drop these claims, although they argued that her withdrawal should be executed "with prejudice," preventing re-filing. Meanwhile, Lively's lawyers characterized Baldoni's assertion as a publicity maneuver and emphasized their client's focus on her remaining allegations of emotional distress, alongside claims of sexual harassment and retaliation. They suggested that Baldoni's counter lawsuits against Lively and her husband, Ryan Reynolds, for defamation and invasion of privacy have complicated matters, potentially exposing him to new damages under California law.

The dispute stems from their work on 'It Ends With Us,' inspired by a bestselling novel by Colleen Hoover, where Lively portrayed a character who navigates a cycle of domestic abuse. Amidst the turmoil, renowned singer Taylor Swift was briefly entangled in the controversy due to a subpoena related to her involvement in the film's script revisions, though her legal team swiftly disputed the legal order, asserting she had no role in casting decisions.

As both parties brace for a court decision on whether to dismiss the infliction claims or require Lively to unveil her mental health records, the complex case continues to unfold, highlighting the intricacies of legal battles in the entertainment industry.