"The Wayfarer Parties have not alleged that Lively is responsible for any statements other than the statements in her CRD complaint, which are privileged," Judge Liman wrote in the opinion and order filing viewed by PEOPLE.
"The Wayfarer Parties have alleged that Reynolds and [publicist Leslie] Sloane made additional statements accusing Baldoni of sexual misconduct and that the Times made additional statements accusing the Wayfarer Parties of engaging in a smear campaign. But the Wayfarer Parties have not alleged that Reynolds, Sloane or the Times would have seriously doubted these statements were true based on the information available to them, as is required for them to be liable for defamation under applicable law."
The judge added, "The Wayfarer Parties’ additional claims also fail. Accordingly, the Amended Complaint must be dismissed in its entirety."
Attorneys for Baldoni did not immediately respond to PEOPLE's request for comment.
Lively's lawyers Esra Hudson and Mike Gottlieb call the decision a "total victory and a complete vindication" for the actress and the others whom "Justin Baldoni and the Wayfarer Parties dragged into their retaliatory lawsuit, including Ryan Reynolds, Leslie Sloane and The New York Times."
"As we have said from day one, this '$400 million' lawsuit was a sham, and the Court saw right through it," they say in the statement, adding that "we look forward to the next round, which is seeking attorneys’ fees, treble damages and punitive damages" from the Wayfarer parties who they say "perpetrated this abusive litigation.”
Sigrid McCawley, an attorney representing Lively's publicist Sloane, says in a statement, "Leslie Sloane has consistently said that she never defamed Baldoni or the Wayfarer Parties and she was wrongfully dragged into this lawsuit because the Wayfarer Parties wanted to actively harm Sloane’s reputation. Today’s decision by the Court makes clear that Sloane did nothing wrong. Sloane stands fully vindicated, and justice has been served."
The Times has long stood behind its coverage of Lively's complaint that was filed in December 2024 and led to her lawsuit against Baldoni. She has alleged sexual harassment and retaliation, which he denies, and her lawyers have previously called his subsequent countersuit "vengeful" and "meritless." A spokesperson for the newspaper previously said, "Our story was meticulously and responsibly reported."
Lively, 37, recently agreed to drop two of her claims against Baldoni, 41 — intentional and negligent infliction of emotional distress — in a move her legal team described as a "routine part of the litigation process" for "streamlining and focusing" their case.
In March, Baldoni's attorney Bryan Freedman spoke out after Lively filed a motion to dismiss their countersuit, saying the actress' attempt to "dismiss herself from the self-concocted disaster she initiated is one of the most abhorrent examples of abusing our legal system."
He added at the time, “Stringent rules are put into place to protect the innocent and allow individuals to rightfully defend themselves. Laws are not meant to be twisted and curated by privileged elites to fit their own personal agenda."
Lively and Baldoni's trial — during which both are expected to testify — is currently scheduled for March 2026.