Ryan Reynolds recently announced a new installment in the lucrative Deadpool franchise at Fanatics Fest in New York, a move seen by some as a calculated distraction from the ongoing legal disputes involving his wife, Blake Lively.
Lively initiated a lawsuit in December 2024 against her former "It Ends With Us" co-star Justin Baldoni and his production company, alleging sexual harassment and defamation. Baldoni responded the following month with a $400 million defamation suit naming Lively and Reynolds, among others, though his case was dismissed in October 2025. Subsequently, a judge dismissed most of Lively's claims, and she agreed to a settlement, seeking over $8 million in legal fees. Reynolds was briefly named in Baldoni's lawsuit but has largely remained insulated from the direct fallout.
Despite his public successes, Reynolds has experienced some career setbacks. Paramount, which has a first-look deal with Reynolds' production company, Maximum Effort, dropped three of his projects in August 2025 following its merger with Skydance. These included "Area 51," a Ferris Bueller spin-off, and "Eloise," which has since moved to Netflix. One studio executive cited Reynolds' high fee and the public perception surrounding the lawsuit as reasons some companies are hesitant to work with him.
However, many major studios, including Warner Bros., Amazon, Netflix, and Disney, continue to back projects produced by Maximum Effort, such as "Animal Friends" and "Aunt Roxie." Sources close to Maximum Effort indicate that the company's operations remain as usual, with no widespread unwillingness from collaborators to work with Reynolds on film projects.
In contrast, Lively has reportedly faced more significant career impacts. Several of her planned projects, including "Dark Days at the Magna Carta" and "The Making Of," appear stalled, with limited updates since early 2025. Attachments to films like the sci-fi thriller "Proxy" and the graphic novel adaptation "Seconds" have also reportedly been severed. Even the film adaptation of Liane Moriarty's novel "The Husband's Secret," for which Lively was long attached, has uncertain casting status.
Lively's consumer brands, including Betty Booze and Blake Brown, have also reportedly encountered difficulties, with Lively's lawsuit mentioning significant drops in retail sales attributed to a "social manipulation campaign." Betty Buzz, her non-alcoholic mixer brand, has reportedly been shuttered.
Furthermore, the legal drama strained relationships, including Lively's friendship with Taylor Swift. Unsealed text messages filed in the case suggested Lively sought Swift's support in script revisions, with alleged responses from Swift indicating loyalty. Baldoni claimed Lively attempted to intimidate him by involving Swift. Swift has reportedly maintained distance from Lively and Reynolds since the settlement, with her partner Travis Kelce unfollowing Reynolds on Instagram, and neither attending Swift's July 3 wedding.
Insiders suggest Reynolds views his role as a supportive husband during a challenging period and believes his continued financial success, largely driven by franchises like Deadpool, will allow him to weather the associated reputational challenges. He is reportedly confident that his work will eventually overshadow the controversy, while acknowledging the delicate balance of supporting his wife while maintaining his professional standing.