Taylor Swift & Blake Lively: Inside the Drama That 'Halted' Their Friendship

Is it bad blood? As Blake Lively's legal war with her It Ends With Us director-costar Justin Baldoni rages on, insiders say her longtime relationship with Taylor Swift is not what it once was.

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"Their friendship has halted," says a source close to Swift, 35, who is godmother to the actress's daughters. "Taylor wants no part in this drama." Another says that Lively, 37, and the pop superstar who was sent a subpoena by Baldoni's lawyers on May 9-are indeed "taking some space" but insists that they are "not no longer friends."

Swift was first pulled into the legal battle-which began in December when Lively sued Baldoni, 41, alleging sexual harassment and a retaliatory smear campaign (Baldoni has denied her claims)-when he countersued the Gossip Girl alum and her husband, Ryan Reynolds, claiming defamation and extortion. Baldoni's amended complaint in January detailed a meeting with Lively, Reynolds, 48, and Swift about the It Ends With Us script and included alleged texts from Lively referring to her husband and the singer-songwriter as her "dragons."