Welcome back to What I’m Hearing+. Tonight, Eriq Gardner is back with
his analysis of the big ruling in the Blake Lively vs. Justin Baldoni case, which is now headed to trial with a focus on which publicists may or may not have exceeded the bounds of typical P.R. and improperly smeared Lively online. Plus, an update in CAA v. Range (take heart, current CAA equity holders, you can now sell off some of your shares), Live Nation’s antitrust side battle with AEG, and the YouTuber who flew a drone over the Harry
Potter set.
All yours, Eriq, and send him tips at Eriq@puck.news.
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Mentioned in this issue: Stephanie Jones, Jeff Bezos, Bryan Freedman, Taylor Swift, Jed
Rakoff, Blake Lively, Tom Brady, Manuel Arroyo, Rupert, Dwayne Johnson, Bryan Lourd, Mark Young, Lewis Liman, Scooter Braun, Justin Baldoni, Arun Subramanian, Ryan Reynolds, Rick Mueller, Barbra Streisand, Nigel Roy Dicks,
Jennifer Abel, and more…
Let’s begin…
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| Eriq Gardner
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- Drones buzz HBO’s
Hogwarts: A few days ago, Warner Bros. Discovery quietly went to court after details from its highly anticipated Harry Potter HBO series leaked online. At the center of the dispute is Nigel Roy Dicks, a U.K. YouTuber known as “DJ Audits,” who flew a drone over Warner Bros.’ 200-acre Leavesden studio lot, capturing aerial footage of the Harry Potter and House of the Dragon sets. (Here’s the
video of his confrontation with security personnel.)
Dicks appears well aware of the legal grey area. On his Linktree, he cites solicitors, property records, and even Bernstein of Leigh v. Skyviews & General Ltd., which held that U.K. property rights in airspace extend only so far as necessary for ordinary use and enjoyment. But WBD isn’t pursuing a trespassing claim, nor is
it echoing Barbra Streisand’s infamous attempt to sue an aerial photographer on privacy grounds after his images of the Malibu coastline—taken to document erosion—happened to include her home. Instead, WBD is targeting the content itself—arguing that Dicks’s footage infringes its intellectual property.
That framing makes the case look less like a drone dispute and something more akin to battles that Apple has waged against tech sites publishing images of
unreleased iPhones. I haven’t heard back from Dicks, but any fight invoking free speech and fair use would be consistent with his posture. After WBD registered a claim with YouTube to remove the Harry Potter set footage, Dicks apparently issued a counter-notice. Litigation, at that point, became inevitable. - Rupert’s Mexican standoff: Speaking of I.P. trespass, the cross-border trademark
brawl over “Fox Sports Mexico” is getting weirder. Fox Corp recently tried to have Manuel Arroyo, the entrepreneur behind Grupo Lauman, which has been running the channel since Disney’s $71 billion acquisition of 21st Century Fox in 2019, thrown in jail. But Arroyo is clinging to “Fox Sports Mexico”—while staring down $200,000-a-day
contempt fines out of New York.
With the tab swelling into the tens of millions of dollars—and evidence that funds may have been moved in defiance of court orders—Fox asked Judge Jed Rakoff for the nuclear option: civil confinement. Rakoff wasn’t willing to go that far, but additional sanctions remain on the table. It seems the judge hasn’t been impressed by the Mexican company’s defenses, including its latest creative argument that Fox should really be suing Disney,
which allegedly agreed to indemnify Fox in connection with the licensing of the trademark. - Range wins a round in CAA fight: Another tough break for CAA in its ongoing, very personal war over those former agents who defected to Range Media in 2020. Bryan Lourd’s team had been arguing that Range didn’t have standing to file an unfair competition counterclaim, because the company wasn’t a party to CAA’s use of noncompetes. But Judge
Mark Young is letting Range proceed, ruling that the management company sufficiently alleged harm as a competitor unfairly shut out from raiding—err, hiring—talent.
The case now heads deeper into discovery, with trial a long way off. Hanging over this is a decision in a separate arbitration proceeding ordering CAA to compensate four ex-agents and reinstate their equity in the company, as I previously
reported. CAA is appealing, but perhaps as a result of that ruling, the agency this week informed current equity holders that they can cash out as much as 5.6 percent of their stakes in the company. - A Live Nation sideshow: As the Live Nation antitrust trial lurches into its final
week, a side skirmish has erupted between the concert behemoth and its top rival, Anschutz Entertainment Group. Live Nation is now accusing AEG of helping to intimidate a potential witness—Rick Mueller, a former AEG executive who had been prepared to testify about the relative quality of ticketing platforms. Mueller pulled out, according to Live Nation’s lawyers at Latham & Watkins, after AEG handed the states personal information about his departure from the company. AEG,
naturally, said it had done nothing improper by supplying impeachment material, and added that Live Nation’s objections were the “height of hypocrisy” given that the company had “repeatedly used intimidation, alongside other tactics, to strengthen and extend its domination of the live entertainment and ticketing businesses.”
It’s highly unlikely this little intratrial bloodletting will move Judge Arun Subramanian, sway the jury, or materially affect the outcome AEG is
rooting for—namely, the breakup of Live Nation and Ticketmaster. What it does underscore, however, is AEG’s almost constant presence in the courtroom over the past month. The company has an obvious stake in the result, and has shown up with more than just witnesses: Its outside lawyers from Hogan Lovells have been planted in the gallery throughout. That is not a casual expense.
In any event, this trial won’t be the last word on Live Nation’s hold over the concert business. Two consumer
class actions are queued up for later this year, and both become considerably easier for plaintiffs if the states prevail in this case. A government win could also embolden smaller rivals to bring their own cases. Yes, AEG included.
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And now, elsewhere at 500 Pearl Street in New York…
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Yes, a judge narrowed the case. But there’s still plenty at stake in Blake Lively
and Justin Baldoni’s long-running legal showdown, which now centers largely on Team Baldoni’s alleged retaliatory media campaign as the clock ticks down to a trial.
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With six weeks to go before the Blake Lively–Justin Baldoni trial
opens in U.S. District Court in Manhattan, the case feels less like a sober legal proceeding and more of a social media circus whose main event remains maddeningly hard to discern. Last week, Judge Lewis Liman tossed 10 out of 13 causes of action. But while much of the coverage has treated the ruling as a gutting of Lively’s case, that strikes me as an unduly severe read. Lively can still pursue her incendiary claim that she’s been the victim of a Hollywood smear job, with
damages potentially large enough to have the lawyers browsing real estate on Nantucket.
To be sure, Judge Liman did perform a bit of spring cleaning. His April 2 ruling tossed Lively’s sexual harassment claims against the It Ends With Us director on the grounds that she was an independent contractor, not an employee. (It had to do with her star power. Watch for this doctrinal nugget to resurface in future Hollywood blood feuds…) Liman also jettisoned several other claims,
including the defamation count targeting Baldoni’s lawyer, Bryan Freedman. For all of the attention paid to Freedman’s media performances, Liman concluded that any reasonable person would understand the lawyer to be commenting about what evidence would show in a judicial proceeding, not delivering freestanding factual assertions from Sinai.
But Lively’s marquee retaliation claims survived—namely, her allegation that Baldoni and the other It Ends With Us producers
tried to kneecap her in the press and sow backlash against her on social platforms after she raised concerns about a hostile workplace. For now, Liman has not done much to trim her damages theories.
Which raises the obvious question: What, exactly, is this trial supposed to look like? Is Lively really going to put brand consultants on the stand to testify that she has become radioactive in Hollywood and studios won’t hire her? Is she prepared to sit there stoically as witnesses remind the
court that her once-promising haircare line, Blake Brown, which some predicted would be Target’s next $100 million beauty brand, has fallen off a cliff since the It Ends With Us controversy erupted?
Perhaps. That may be the price of dramatizing what she says was done to her: that Baldoni’s camp worked to turn the internet
against her, seeding negative narratives, boosting hostile content, and using influencer and social media channels to recast her not as a complainant, but as the problem. (She plans to have a witness testify that there are signs of artificial content manipulation on TikTok, Reddit, and other platforms. Baldoni’s camp has denied the claims of social media engineering.) But leaning into the financial harm to her brand would also invite exactly the sort of scrutiny that most celebrities—like her
friend Taylor Swift—spend fortunes trying to avoid. For now, I still need to see it to believe that’s where this is headed.
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I’m sure it stung for Lively and her husband, Ryan Reynolds, to watch Liman
vaporize the harassment claims based on what they might deem to be “technicalities”—employment status, an unsigned actor loan-out agreement, and the like. (For the record, her legal team has told me that there will be no attempt at a pretrial appeal.) It was probably no accident that, amid the rough press coverage, WME rushed out a statement praising Lively for choosing to “stand up for herself.” Client service, it seems, now knows no earthly limit.
In one respect, though, Liman may have
done Lively a small favor. She no longer has to prove that sexual harassment, as a matter of law, actually occurred. While she will almost certainly try to lay out the underlying conduct to the jury in vivid detail, these he-said, she-said contests are notoriously slippery. On the surviving retaliation claims, by contrast, the question is narrower and arguably easier for her: not whether Baldoni’s conduct was actionable harassment, but whether she honestly and reasonably believed that
it was. If she can establish that, while fending off Baldoni’s expected counternarrative that her complaints were deployed as a pretext for seizing greater creative control over It Ends With Us, then the trial’s central question becomes whether Baldoni’s P.R. response, as Liman put it, “crossed the line.”
In his ruling, Liman pointed to evidence suggesting a plan to “destroy” Lively. “There comes a point,” he observed, “where the accused stops simply defending him or herself and
starts taking action that a reasonable jury could view as retaliation for the fact that the accuser had the temerity to make the accusations.”
Given that setup, Baldoni’s defense is likely to be straightforward. First, his lawyers will presumably recast the crisis-management campaign as ordinary reputational triage—communications decisions made during a turbulent film rollout, not a plot to silence a complainant. Sure, Baldoni’s reps may have contemplated something aggressive,
but the defense will argue that the evidence shows something narrower and more conventional. Second, they’ll likely justify the motive not as a punishment, but rather as an effort to protect the movie, its release, and various reputations amid a very public rupture. And finally, if the evidence suggests the P.R. effort had multiple drivers, his team will probably try to persuade the jury that Lively’s complaints were not the “substantial motivating factor.”
Liman’s ruling, in other words,
pointed to evidence cutting both ways—roughly, Baldoni & Co. defended themselves versus They tried to bury her—and decided to let a jury sort it out. This will hardly be the last time he shapes the case before anyone is sworn in. His gatekeeping on evidence and witnesses may prove every bit as consequential as the summary judgment opinion itself.
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As the trial approaches, expect bruising fights over the permissible scope of the underlying
harassment evidence, how far defendants can go in characterizing their P.R. push as lawful self-help, whether Freedman’s activities are protected or fair game, the reliability of dueling P.R. experts, and the soundness of the competing damages models. The wreckage of the dismissed claims, combined with what remains—including the allegation that the producers breached the anti-retaliation clause in the contract rider, Lively’s now-infamous 17-point list of demands from the production—guarantees a
great deal of posturing before trial.
There will also be the usual knife fight over jury instructions, along with what’s shaping up to be a particularly interesting battle regarding how this spectacle gets sequenced. If Liman truly intends to try this case alongside the Baldoni camp’s defamation fight against its former publicist, Stephanie Jones, the proceedings may have to be broken into phases—first, what happened on set; then, what happened in the aftermath; and only
after all that, what any of it is worth in damages.
Under ordinary circumstances, right now is when cooler heads, skyrocketing legal bills, and the prospect of public humiliation begin nudging everyone toward a settlement. And yet there’s little sign that either side is backing off. This case has long since ceased to be just about litigation risk; it is now also about pride, narrative control, and the refusal to blink. That is precisely why I’m not holding my breath for a
détente, even if the trial that awaits still feels faintly unimaginable.
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Jones is shaping up to be one of the more underrated figures in this fiasco—a name barely invoked
in last week’s coverage, even though she was at the center of a significant March 26 ruling. Thanks to that decision, the publicist who once repped Tom Brady, Dwayne Johnson, Jeff Bezos, and Scooter Braun may yet command a great deal of attention at trial.
Recall that Liman previously tossed the Baldoni camp’s assorted counterclaims against Lively. He also rejected their effort to pin liability on The New York
Times for its splashy story about a “Hollywood smear.” Jones, however, did not get off so lightly. After she was fired by Baldoni (she allegedly violated instructions by talking to the press and Sony), she told Lively’s publicist, Leslie Sloane, about a coordinated effort to destroy Lively’s reputation, and later, in response to what has been described as a “sham” subpoena, turned over a cache of internal communications.
On the allegation that she knowingly fed
Lively’s team a false narrative, the judge has allowed a defamation claim to proceed. And in an earlier ruling, Liman has also allowed Jones’s former subordinate, Jennifer Abel, to pursue certain claims over the way documents were allegedly taken from a company-issued phone and passed to the other side, eventually becoming grist for the Times.
In other words, when it comes to assigning blame for who really lit the match on this P.R. war, Baldoni’s lawyers are
likely to put Jones at the center of the tableau, with the alleged motive being that she resented losing her client. Just as importantly, that may provide Baldoni’s camp with a side door for attacking the credibility of Lively’s account of what happened on set.
Of course, Lively’s team will likely see the maneuver for what it is and move aggressively to keep Jones from becoming an all-purpose foil—which is why I’ll be keeping a close eye on the upcoming pretrial fights. It’s hard to
imagine the judge being comfortable with the risk that evidence admissible in one case could unfairly contaminate the other. Then again, there are still six weeks left to sort through that procedural thicket. Quiet, this won’t be. Buckle up.
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Thanks, Eriq. I’ll see everyone on Thursday.
Matt
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Puck founding partner Matt Belloni takes you inside the business of Hollywood, using exclusive reporting and insight
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