Blake Lively has accused her co-star and director Justin Baldoni of sexual harassment and launching a smear campaign against her. The allegations stem from their collaboration on a summer movie. Baldoni's lawyers have dismissed the claims as false and intentionally damaging. The legal action is currently a pre-lawsuit complaint in California, with a formal lawsuit expected soon. Legal expert Dave Arenburg suggests that the case is likely to settle before reaching court to avoid public exposure of potentially embarrassing evidence. The lawsuit is civil, not criminal, and primarily concerns financial compensation. Both parties have a vested interest in settling to protect their careers and the potential for a sequel to their successful film.