As he continues his legal battle against Blake Lively, Justin Baldoni faces a whole new wave of challenges that could potentially harm his career and put his financial security at risk.
After Lively accused Baldoni of sexual harassment, retaliation and infliction of emotional distress in a December lawsuit, sources close to the actor and director told Fox News Digital that the claims have since cost him three jobs and hundreds of millions of dollars.
“Justin Baldoni’s career is going to nosedive because of this legal battle,” Ryan McCormick, a Reputation Management Expert & Managing Partner at Goldman McCormick PR, told Fox News Digital.
BLAKE LIVELY VS. JUSTIN BALDONI: EVERYTHING TO KNOW
“It’s not because of his acting ability or following,” he continued. “Even if all accusations are proven false, I think in the eyes of studios, he’s radioactive. Entertainment companies take a risk on each film, not knowing if it will connect with the masses. With Baldoni, there’s now added perils of not knowing if another legal battle will manifest with his future co-stars.”
“In addition, the actor has run awry with one of Hollywood’s most powerful couples,” he added. “Their sphere of influence goes far beyond what the public sees. I can see Blake Lively and Ryan Reynolds subtly letting film studios know that they will not do business with them if they do business with Baldoni.”
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“Also, Lively has 44M followers on Instagram and [Ryan] Reynolds (Lively’s husband) has 53 million. Baldoni has 4 million. For all the negative press Lively has gotten in the past year, she can recover from this legal hurricane. Baldoni’s brand and marketability have unfortunately been fatally compromised,” he concluded.
Arron Bennett, founder of Bennett Financials, told Fox News Digital that Baldoni could face “several potential financial consequences” due to the legal battle.
“Three job losses and ‘hundreds of millions of dollars’ in potential earnings indicate serious financial stagnation,” said Bennett. “Being an actor-director like Baldoni, ongoing projects and future deals stand as vital income sources. Studios or production companies might reevaluate their willingness to work with him if they believe he presents too much legal risk during the lawsuit, which could then harm his capacity to land new roles or direct future projects.”
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Even if Baldoni claims victory in court, he will still face a significant financial loss.
“Engaging in high-profile legal conflicts claims high financial costs and potential settlements plus damages which might drain his available cash if the case extends over time,” Bennett said. “Winning the legal battle will not relieve him from paying attorney fees and PR crisis management costs and lost earnings.”
Natalie Trice, a brand and PR expert for Natalie Trice Publicity, said the Baldoni-Lively battle is a true testament to how quickly things can take a turn for the worse, both professionally and personally.
“Let’s be real, losing three jobs and potentially hundreds of millions of dollars shows how legal battles affect Hollywood figures beyond the courtroom and how fast things can escalate,” she told Fox News Digital. “Studios, sponsors, and investors assess risk quickly, and this could reshape Baldoni’s future opportunities, and if whoever ‘wins’ I fear there will be massive losses on both sides that could ripple on for a longtime.”
“Nowhere more than Hollywood is your brand is your currency, and the longer this plays out, the harder it becomes for him to reclaim control of the narrative, especially as more and more stories are leaked,” she added.
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But Bennett said there are ways Baldoni can recover if and when he takes the financial hit, including strategic brand rehabilitation, diversifying income streams, legal and financial risk mitigation and alternate revenue sources.
“PR tactics combined with selected interviews and philanthropy provide Baldoni with opportunities to shape public opinion,” said Bennett.
“By pursuing producing and writing roles along with executive positions or media investment ventures, he can maintain stable income levels despite limited acting-directing opportunities,” he added.
WATCH: JUSTIN BALDONI RELEASES UNEDITED ‘IT ENDS WITH US’ FOOTAGE FEATURING BLAKE LIVELY
In December, Lively detailed allegations of sexual harassment, retaliation, intentional affliction of emotional distress, negligence and more against Baldoni and film producer Jamey Heath in a complaint first filed with the California Civil Rights department and later in federal court in December.
In response, Baldoni filed a $400 million lawsuit against Lively and Reynolds, accusing them of civil extortion and defamation. His team then released unedited footage from the set of “It Ends With Us” that they claim refutes Lively’s previous accusations of sexual harassment. However, Lively’s legal team claims the footage bolsters the actress’s allegations.
After the release, Lively’s legal team demanded a gag order be issued against Baldoni’s lawyer.
On Jan. 23, Baldoni’s lawyers filed a response, calling Lively’s gag order attempt an “intimidation tactic” and “tactical gamesmanship.”
Baldoni and Lively’s legal teams were in federal court on Feb. 3 where the judge ordered that they follow the New York Rules of Professional Conduct, which limit speaking to the press.
Neither party will be permitted to make statements to the press that have a “substantial likelihood” of prejudicing a jury. However, the legal teams will be allowed to defend their client in the media against publicity not created by either side.
Fox News Digital’s Lauryn Overhultz and Tracy Wright contributed to this report.
