The legal battle between actress Blake Lively and director Justin Baldoni has taken another dramatic turn. As reported by Forbes on July 6, 2025, the Wayfarer Foundation, a social justice nonprofit funded by billionaire Steve Sarowitz, abruptly shut down amid the escalating feud due to security threats and an arson attempt.
On May 2, 2025, the $60 million Wayfarer Foundation announced its closure. The nonprofit, where Justin Baldoni served as a board member and which had backed more than 200 social justice groups since 2021, folded mere days after founder Sarowitz was targeted in an arson attempt and a kidnapping threat against his daughter.
On July 6, 2025, social media personality Zack Peter took to X to sarcastically comment on the nonprofit’s closure and the unfolding situation, writing:
“He said: Never-mind, we’re bringing back toxic masculinity! These ladies have lost their damn minds”
The Wayfarer Foundation’s closure amid the legal battle between Blake Lively and Justin Baldoni explored
Started in 2021, the Wayfarer Foundation distributed nearly $60 million to more than 200 nonprofits that promoted minority empowerment and social justice. But even as the company flourished, on May 2, 2025, it announced it was shutting down just days after Sarowitz experienced a terrifying personal threat.
Authorities said an arsonist set a trash can on fire in Sarowitz’s driveway on April 28, followed by a text message threatening to kidnap his daughter unless he paid a ransom of $80,000. The messages specifically mentioned Blake Lively’s lawsuit, implying that the perpetrator was inspired by it. The text read:
“If you guys are prepared to spend a hundred million to ruin the lives of Ms. [Blake] Lively and her family, we are sure you can spare a few for your daughter.”
Although a suspect, Eduardo Aragon, was arrested and charged, the foundation’s board decided to shut down operations by June 30, citing a decision to focus on “long-term sustainability.”
On May 2, Sarowitz issued a statement on all his social media platforms, which read:
“Upon unanimous decision of the board of directors, today we will begin the process of sunsetting. We have determined that this decision is necessary to ensure the long-term sustainability and impact of our charitable mission.”
Many of the foundation’s grantees, who depended on its unrestricted funding, were left in limbo. Nonprofits like Coffee, Hip Hop & Mental Health lauded Wayfarer’s hands-on support but will now have to find new donors.
Sarowitz says he will still donate privately through a donor-advised fund, but without transparency, future promises seem uncertain. As Brian Mittendorf, a professor of accounting at Ohio State, put it:
“One thing private foundations can provide is stability and as close as you can get to a long-term commitment to funding. To suddenly shut down all at once undermines that.”
The controversy stems from a sexual harassment suit filed against Justin Baldoni by Blake Lively in December 2024 related to their film, It Ends With Us, which he directed and in which they both starred. She further claimed that Sarowitz’s Wayfarer Studios initiated a smear campaign against her when she went public.
Justin Baldoni vehemently denied the allegations and countersued Blake Lively, her husband Ryan Reynolds, and others for $400 million; however, a judge dismissed the suit on June 9, 2025.
The trial between Blake Lively and Justin Baldoni is scheduled to take place on March 9, 2026.
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Edited by Shubham Soni
