Washington [US], April 3 (ANI): A federal judge on Thursday dismissed actress Blake Lively's sexual harassment allegations against her 'It Starts with Us' co-star Justin Baldoni, but her multimillion-dollar lawsuit over defamation and retaliation is still set for trial next month in New York City.

US District Judge Lewis Liman issued a 162-page ruling stating that Lively's sexual harassment claims lacked a sufficient connection to California, where she filed the suit, as reported by Deadline.

'None of these acts or occurrences provides the 'substantial connection' to California needed to sustain Lively's sexual harassment claims,' Liman wrote, as quoted by Deadline.

He further clarified that both her federal and state sexual harassment claims could not survive summary judgment against Baldoni, his Wayfarer Studios, and associated defendants.

Jurisdictional issues had been a recurring challenge in the case, with Lively filing under California law even though the alleged harassment occurred outside the state during the production of the Sony-distributed 'It Ends with Us.'

Despite the dismissal of the harassment claims, Lively's legal team maintains the focus remains on her retaliation and defamation claims.

'This case has always been and will remain focused on the devastating retaliation and the extraordinary steps the defendants took to destroy Blake Lively's reputation because she stood up for safety on the set,' said Sigrid McCawley, one of Lively's attorneys, as quoted by Deadline.

She added that Lively looks forward to testifying at trial and highlighting coordinated online attacks targeting women in Hollywood.

Baldoni's legal team welcomed the decision, emphasizing that the dismissal does not imply wrongdoing.

'Sexual harassment isn't going forward not because the defendants did nothing wrong but because the court determined Blake Lively was an independent contractor, not an employee,' stated attorneys Alexandra Shapiro and Jonathan Bach, as quoted by Deadline.

They also noted that all claims against the individual defendants including Baldoni, Jamey Heath, Steve Sarowitz, Melissa Nathan, and Jennifer Abel, were dismissed.

'What's left is a significantly narrowed case, and we look forward to presenting our defense to the remaining claims in court,' they said, as quoted by Deadline.

Lively had also alleged that Baldoni orchestrated an online smear campaign against her in mid-2024, involving crisis PR professionals Melissa Nathan and Jennifer Abel.

As per Deadline, the judge allowed Lively's retaliation claims against Wayfarer Studios to proceed to trial, noting that a reasonable jury could find adverse actions were taken against her due to her protected activities. However, aiding-and-abetting claims against Nathan and Abel were dismissed, as the court concluded liability would attach to the employer in this context.

Attempts at mediation earlier this year had failed, leaving both parties poised to face a jury in late May. Judge Liman emphasized that no determination on credibility had been made at this stage; the trial will assess the defamation and retaliation claims on their merits. (ANI)