This decision follows a dispute over whether Lively would need to provide her medical records as part of the case.

On Tuesday, U.S. District Judge Lewis Liman rejected Lively's request to potentially refile the emotional distress claims at a later date if she chose to drop them now. Judge Liman's order stated that Lively's motion was denied based on her representation that these claims would be withdrawn.

Lively's attorneys, Esra Hudson and Mike Gottlieb, released a statement explaining that their client is withdrawing these particular claims because they are "no longer necessary." However, Lively plans to continue seeking emotional distress damages through other avenues within her lawsuit, specifically citing allegations of sexual harassment and retaliation. They also criticized Baldoni and his company, Wayfarer, stating that their strategy of filing retaliatory claims could lead to substantial damages under California law.

Last Friday, Lively voluntarily agreed to drop her claim for infliction of emotional distress "without prejudice." This legal term means she would be free to refile the claim in the future. Baldoni's legal team opposed this move, arguing that Lively should permanently abandon the claim. Baldoni stressed that without access to Lively’s medical records, he could not effectively counter her claims of emotional harm.

Judge Liman's ruling significantly limits Lively's ability to revisit the emotional distress claims unless Baldoni consents or she files a formal motion for the court to dismiss the claims without prejudice. If she proceeds with those claims, she will be unable to present evidence regarding her emotional distress.

Representatives for Baldoni have declined to comment on the ongoing litigation.