“$100 million in legal bills” — Kjersti Flaa talks about the mounting legal expenses of the ongoing Blake Lively-Justin Baldoni drama

As the ongoing high-profile legal conflict between Justin Baldoni and Blake Lively continues to escalate, journalist Kjersti Flaa, who has been actively covering the case, reacted to a July 4, 2025, article by Forbes about Wayfarer Studios co-founder Steve Sarowitz and his decision to shut down the Wayfarer Foundation, amid the accusations levied against him.

For the unversed, in December 2024, Blake Lively filed a lawsuit against her It Ends With Us director and co-star Justin Baldoni for sexual assault and orchestrating a smear campaign against her. She also alleged that Sarowitz funded that campaign.

The complaint additionally stated that during the New York premiere of the film, Sarowitz reportedly alluded to the smear campaign, as per US Weekly. It read:

"He was prepared to spend $100 million to ruin the lives of Ms. Lively and her family."

The Forbes article stated that many media outlets speculated that the Wayfarer foundation shut down due to financial burden from the legal battle, with experts estimating that security and PR expenses could already total up to $40 million.

In her July 6 YouTube video, Flaa reacted with disbelief at the amount, pointing out that the discovery process in the Justin Baldoni vs. Blake Lively case, often "the most expensive process in a lawsuit," was still ongoing.

"I mean, if it's continuing like this, this could definitely end up being a $100 million in legal bills before even the trial start. Can you imagine how many people, how many victims, $100 million—or just by now $40 million—could help, just because Blake Lively cannot tolerate being unpopular?" she commented.

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Why did Steve Sarowitz and Justin Baldoni close the Wayfarer Foundation?

Steve Sarowitz launched the Wayfarer Foundation in 2021, with Justin Baldoni serving as a board member. Between 2021 and 2024, Sarowitz donated approximately $160 million to the foundation, which distributed nearly $60 million in grants to over 200 nonprofits, as per the aforementioned Forbes article.

The news about the Wayfarer Foundation shutting down was announced on the foundation's official Instagram handle on May 3, 2025. The post, written by Sarowitz, was captioned:

"I am so incredibly proud of the impact this organization has made and deeply grateful for our staff, board, donors and partners. Upon unanimous decision of the board of directors, today we will begin the process of sunsetting the Foundation."

However, according to the aforementioned Forbes article, just weeks before the news of its shutdown surfaced, the foundation was considering expansion. On April 9, Sarowitz reportedly emailed the grantees, talking about the future of the organization. It read:

"Though we're living in a time of profound change, the Foundation remains committed to our mission [...]. Our work is only beginning and we have much to do together."

According to the outlet, on the morning of April 28, Sarowitz noticed a fire burning in a trash can in his driveway and managed to put it out. Later that day, his wife received a text from an anonymous sender who claimed that they had helped start the fire. They also threatened to kidnap Sarowitz's daughter, who is studying at Northwestern University, demanding $80,000 or she wouldn't "make graduation."

The text reportedly read:

"If you guys are prepared to spend a hundred million to ruin the lives of Ms. [Blake] Lively and her family, we are sure you can spare a few for your daughter."

As the threats grew increasingly severe, Sarowitz decided to shut down the foundation. In a statement to the outlet, he said that they would move forward with a donor-advised fund instead.

"We decided that private giving was a better way to go forward. Foundations can be slow and bureaucratic. This gives us a lot more flexibility and allows us to give more money with fewer resources," he stated.

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Meanwhile, amid the ongoing legal back-and-forth, Justin Baldoni and Blake Lively are set to face each other in court in March 2026. In recent developments, Baldoni dropped his claims against Lively by not filing an amended complaint within the deadline.

For the unversed, Justin Baldoni initially filed a $400 million lawsuit against Lively and a separate $250 million lawsuit against The New York Times for publishing an article detailing Lively's claims. However, Judge Lewis J. Liman, who is presiding over this case, dismissed both of Baldoni's lawsuits but allowed him to file an amended complaint by June 23, 2025. Justin Baldoni ultimately chose not to do so.