Justin Baldoni's Lawyers Are Challenging Blake Lively's Financial Damage Claims and the Kate Middleton Photoshop Controversy Is Now Part of the Case

The legal dispute between It Ends With Us co-stars Blake Lively and Justin Baldoni has taken a new turn as Baldoni's team challenges her financial damage claims.

Baldoni’s legal team instead argued that the actress’s financial woes come from her pre-existing reputation issues. With trial set for May 18, both sides are contesting claims of financial and professional harm.

According to the Daily Mail, Baldoni's attorneys are pushing back against claims that he caused Lively's financial losses arguing that her issues come from an allegedly controversial pre-existing public image and business track record.

During a pre-trial hearing, Baldoni's lawyers cited Lively's past public behavior, including her response to Princess Catherine's edited photo controversy which drew a lot of backlash after it was revealed that the Princess of Wales was diagnosed with cancer.

Baldoni's team used the reference to argue that Lively's reputational problems predated the legal dispute.

Baldoni’s team particularly highlighted how Lively’s Photoshop fiasco had played a major role in her earning a lot of backlash. Lively shared a sarcastic edited photo of herself that many saw as mocking Princess Catherine's Photoshop controversy. However, the action backfired and drew several criticisms after it was revealed that Middleton was in the middle of her cancer diagnosis.

Blake Lively issued an apology after the same. Separately, Baldoni's lawyers disputed the extent of Lively's alleged financial damages, alleging that the estimates from her team were “exaggerated.”

On the other hand, The Town actress’s team has claimed that she lost tens of millions in endorsements, and additionally, hundreds of millions in projected earnings.

Kaltgrad dismissed the projections as "pie in the sky," calling them based on "unrealistic assumptions" about Lively's future earnings.

The court arguments suggest that Lively earned around $21 million from doing four movies over the last eight years before the releases. According to the court arguments, Lively's expert projected earnings of over $140 million in the next five years, which Baldoni's team described as "implausible" citing what they feel is a "scattered work history."

Baldoni's legal team also cited Lively's business ventures, particularly her beverage brand Betty Buzz, to challenge her financial loss claims, as evidence that her financial woes were not linked to any alleged smear campaign.

According to the court findings, concerns about the brand’s long-term success existed independently of the internal discussions, hinting at challenges in maintaining the growth in the U.S. market.

This resulted in more focus being placed on expanding her alcoholic line, Betty Booze, as the anchor product. The pre-trial maneuvering sets the stage for what promises to be a contentious proceeding when the case goes to trial on May 18.