Justin Baldoni says he's not to blame for Blake Lively's downfall as lawyers brand her a 'bully' with a history of flop business ventures at pre-trial hearing

Justin Baldoni's lawyers insist he is not to blame for Blake Lively's losses, claiming she was already a 'bully' with a history of failed business ventures. 

During a pre-trial hearing on Tuesday, Baldoni's legal team pointed to Lively's public criticism of Kate Middleton as evidence of her conduct, arguing it shows a pattern of behavior that pre-dated the release of It Ends with Us, rather than any coordinated social media campaign. 

The claims relate to March 2024, when Lively, 38, mocked the Princess of Wales after she posted an edited family photograph that was later revealed to have been digitally altered, sparking widespread backlash and global headlines. 

Lively then posted an obviously Photoshopped picture of herself with a huge thumb, a chair in two pieces and a lemon floating above her head.

A few days later Middleton revealed she had been diagnosed with cancer forcing an apology from Lively. 

Baldoni's attorneys also argued that the actress's alleged financial losses were not the result of any smear campaign, but her unpopularity, claiming she has a track record of business ventures flopping, such as her liquor brand Betty Buzz.

The latest clash comes ahead of a high-stakes trial between the co-stars turned nemeses, set to begin on May 18, where both sides are expected to battle over the fallout from their 2024 movie It Ends With Us, as well as claims of reputational damage and financial losses.

The judge is also weighing whether to unseal key pieces of evidence currently hidden from public view, as well as whether to impose time limits on the trial, now just weeks away. 

Lively's team claims she lost tens of millions in endorsements on top of nine-figure hits to her earnings and profits - figures Baldoni's side has dismissed as wildly inflated. 

Baldoni's attorney Amir Kaltgrad argued the damages estimates were 'pie in the sky' and broke down as: $143 million in lost profits, $132 million in lost earnings and several million more for lost endorsements.

He claimed the calculations from her experts about her lost earnings were speculative.

One of them made an 'unrealistic assumption' about how much work Lively would do in the years after It Ends With Us, he told the court. 

Kaltgrad noted that Lively only earned $21 million from four film projects, in the eight years leading up to the release of the 2024 movie.

Yet Lively's expert Richard Marks, a lawyer who works in the entertainment industry, estimated that she would have earned $142 million in the five years after the film - just based on her acting.

Kaltgrad argued Lively had a 'scattered work history' and claimed there was 'evidence she didn't want to work full time.' 

'Yet Mr Marks has opined she's going to be working day and night,' Kaltgrad said.

'He has a 600 percent increase in her earnings between $21 million she made and $142 million she's going to make.' 

Kaltgrad said that in one case it was Lively's business decisions that caused her economic harm, not Baldoni.

He claimed her non-alcoholic drinks line Betty Buzz 'did not succeed for nothing to do with the defendants,' pointing out that that her own accountant Jeffrey Kinrich, said as much.

In a court filing last week, Lively herself admitted that her brand Betty Buzz was failing.

She admitted that Jeffrey Kinrich, a certified public accountant who she hopes will testify about her lost income, did not calculate damages from Betty Buzz, her non-alcoholic drinks brand.

According to a court filing 'management had doubts about the profitability and sustainability of Betty Buzz for reasons unrelated to the online manipulation.' 

Lively admitted that management for Betty Buzz said that her spirits-based drinks were 'demonstrating explosive growth.'

But it would be 'difficult' for Betty Buzz to 'gain real profitability in the US,' the filing stated.

As a result, management chose to focus on Betty Booze, the alcoholic drinks, as the 'anchor product'

The Betty Buzz website is still operational and customers can still pay $34.99 for 12 cans of sparkling grapefruit drink.

Another of Baldoni's lawyers, Fabien Manohar Thayamballi, disputed the claim from Lively that online comments calling her bully were solely the result of digital manipulation.

The attorney noted Lively had been mean herself including 'bullying' Catherine, Princess of Wales in 2024 for accidentally posting Photoshopped photos, something Lively later apologized for.

Speaking outside court, Lively's lawyer Sigrid McCawley poured cold water on the prospect of any last minute settlement.

She said: 'Blake's hope is to be able to have her voice heard in that courtroom and that's what we're focused on right now'.

McCawley said that Lively would testify and was 'expecting to take the stand'.

She said: 'Blake's been ready for this trial, it's a moment she's been waiting for a long time, to have her voice heard in this court.

'She's feeling really good…she's finally at a point where she will be able to tell her side'.

Asked about whether the celebrities who have been named in court documents like Taylor Swift and Ben Affleck might testify, McCawley said that Lively did not want that.

She said: 'Blake has really tried ferociously to protect her friends…this is really about her and what she experienced. That's what the case is going to center on.' 

The high-stakes legal battle between the two Hollywood stars is set to go to trial in just three weeks, setting the stage for a potentially explosive courtroom showdown.