Court Filings Show Blake Lively's Betty Buzz Sales Drop Tied to Baldoni Feud Backlash

A court filing in Blake Lively and Justin Baldoni's legal dispute has revealed data linking negative press coverage to falling sales for Lively's Betty Buzz brand and rising worries among retail partners.

Betty Buzz sales shifted sharply in mid-August 2024 as Lively's press tour for "It Ends With Us" intensified. Criticism surged, with industry sources calling Lively and her brand tone-deaf, a label that branding expert Evan Nierman said proves devastating for celebrity brands in the social media era.

"Being called tone-deaf is commercially devastating for a celebrity brand because it tells consumers they’re out of touch with the real world and the audience that made them valuable in the first place," Nierman, founder and CEO of crisis PR firm Red Banyan, told Fox News Digital. "With today’s social media climate, once that label takes hold it changes the way people interpret everything the brand does next, and becomes the lens through which every product, post and public appearance gets judged."

That change hits lifestyle brands hard, since they rely on personal ties with buyers. "When the once-polished exterior begins to tarnish, crack, and fade, that consumer connection fades with it," said Doug Eldridge, founder of Achilles PR. He noted a clear overlap in court documents between public backlash against Lively and retail sales drops, especially among female consumers.

Internal documents obtained by Fox News Digital showed the fallout spread beyond online chatter. One Betty Buzz employee reported after a Kroger call that negative press from Lively's movie interview left a bad taste, with the retailer planning to watch sales closely and expecting declines. "They are wondering what BL will be doing to course correct and make things right with her audience," the email stated. "This is the first direct feedback I’ve heard from a retailer, so I wanted to share. There are likely others."

Princess Cruises' VP of Food and Beverage wrote that their legal and ethics committee was spooked by Lively and that efforts were underway to avoid impact.

Crisis PR experts said such retailer reactions signal bigger trouble. "When a celebrity starts generating headlines for the wrong reasons, corporate partners move fast to protect themselves," Nierman said. "Companies work with famous people because they want borrowed trust, borrowed attention, and borrowed glamour, but when that celebrity brings controversy instead of confidence, brand teams immediately start asking themselves whether the upside is still worth the risk."

Most partnerships include morality clauses allowing termination if an endorser's actions harm the company's image, Eldridge explained. "In simplest form, any statement or action made by the endorser – whether criminal or otherwise – which degrade the public perception or reputation of the individual, can initiate a for cause termination by the sponsor," he said.

Dave Quast, founder of EDQ Strategies, described this as reputational risk management amid fast online reactions, not just cancel culture. "Consumers today expect brands and public figures to align with certain values and cultural expectations, and companies monitor that closely," he told Fox News Digital.

The brand issues played out alongside Lively and Baldoni's nearly two-year legal fight, which they settled in a joint statement on Monday. The "It Ends With Us" stars had been due in court on May 18. Baldoni's lawyer Bryan Freedman said Tuesday that major points were agreed in concept, though details remained. "I think where the parties are is ... people are working on an agreement and the terms of an agreement and I think in concept certain major points have been agreed to, which we're very pleased with," Freedman said on "Hot Mics with Billy Bush." He added, "And you know, as they say the devil is in the details and we'll see what the agreement looks like and work on that agreement."

Experts differed on recovery odds. Quast said settlements reduce uncertainty and past backlashes have faded. Nierman noted retailers now lack reason to fear more headlines but confidence won't return on its own. Eldridge said Lively's brand can rebound in a nation fond of second chances, though steady sales declines show consumer sentiment matters. "A celebrity brand can recover, but it has to earn its way back," he said. "The public will move on from the lawsuit, but retailers are going to care about whether consumers are still buying."

Lively recently appeared at the Met Gala as her brand faces questions over whether the backlash signals a short dip or lasting change.