Steve Sarowitz, the billionaire Paylocity founder, who has been supporting director Justin Baldoni in the Blake Lively lawsuit Justin Baldoni, has recently encountered severe security threats targeting his family. In April 2025, a fire was deliberately set in a trash can outside Sarowitz’s home in the Chicago suburb of Highland Park, followed by threatening messages demanding a ransom to ensure the safety of his daughter.
His wife, Jessica, witnessed the fire, and shortly after, they received texts from an anonymous sender claiming responsibility for the arson and threatening to kidnap their daughter, who is completing her senior year at Northwestern University. The demands included a payment of $80,000, explicitly linking the threats to Sarowitz’s involvement in the ongoing lawsuit.
According to a spokesperson from the Lake County State’s Attorney’s Office, the note conveyed:
“If you guys are prepared to send 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.”
The arrest of 26-year-old Eduardo Aragon followed, with charges including arson, intimidation, and harassment. Aragon remains in custody pending a court appearance scheduled for July 8. This wave of intimidation highlights the personal risks Sarowitz has faced amid his alliance with Baldoni in the high-profile legal conflict with Blake Lively.
The Closure of the Wayfarer Foundation Amid Escalating Pressures
Following these disturbing incidents, Steve Sarowitz made the difficult decision to shut down the Wayfarer Foundation, an organization inspired by Bahá’í principles that had supported over 200 nonprofits since its establishment in 2021. Sarowitz attributed the closure to timing and operational concerns, without addressing the ongoing lawsuit or the threats against his family directly.
In a statement shared on social media and communicated to foundation staff and grantees, Sarowitz confirmed the decision, stating:
“Upon unanimous decision of the board of directors, today we will begin the process of sunsetting.”
He assured existing grant commitments would be honored and noted:
“We have determined that this decision is necessary to ensure the long-term sustainability and impact of our charitable mission.”
Sarowitz revealed plans to shift his philanthropy toward private giving through a donor-advised fund, which provides more flexibility and discretion.
“We decided that private giving was a better way to go forward… Foundations can be slow and bureaucratic. This gives us a lot more flexibility and allows us to give more money with fewer resources.”
While the Wayfarer Foundation has often been mistakenly linked directly to Justin Baldoni, it is Sarowitz’s entity. Baldoni participated solely in an advisory capacity as a board member. The foundation’s closure threatens the survival of the more than 150 nonprofits depending on its funding, adding another layer of collateral damage amid the ongoing legal dispute.
Despite speculation that the foundation’s shutdown was triggered by financial strain from the lawsuit, Sarowitz remains financially robust. Forbes estimated his net worth at roughly $2.3 billion, including $1.6 billion tied to Paylocity shares and $700 million in liquid assets, making financial difficulties an unlikely cause for the closure.
Details of the Blake Lively Lawsuit Against Sarowitz, Baldoni, and Wayfarer Studios
Steve Sarowitz’s involvement in the ongoing legal battle between Justin Baldoni and Blake Lively deepened in December 2024 when Lively filed a lawsuit naming Sarowitz, Baldoni, and Wayfarer Studios. Lively accused Baldoni of sexual harassment and alleged that Sarowitz funded a “media smear campaign” aimed at discrediting her after she spoke out. All three defendants categorically denied these accusations.
Earlier, the same month, Sarowitz and Baldoni jointly initiated a $250 million libel suit against The New York Times, alleging the media outlet’s coverage unfairly portrayed the dispute and disseminated falsehoods. Following Lively’s suit, the accused filed a $400 million defamation counterclaim against Lively, her husband Ryan Reynolds, and their publicist, accusing them of making false claims that amounted to civil extortion.
The legal battle has already incurred enormous expenses, estimated at about $40 million spent on legal, security, and public relations efforts. Legal analyst Kjersti Flaa noted the discovery phase is still ongoing and warned the total legal costs could climb to $100 million before the trial even begins. Flaa stated:
“If it’s continuing like this, this could definitely end up being $100 million in legal bills before even the trial starts.”
“Can you imagine how many people, how many victims $100 million – or just, by now, $40 million – could help? Just because Blake Lively cannot tolerate being unpopular.”
These developments illustrate how Sarowitz’s support of Baldoni in the legal battle with Lively has escalated into a costly and contentious public conflict, impacting his philanthropic activities and personal safety.
Implications for Steve Sarowitz and Broader Consequences
The brutal backlash experienced by Sarowitz underscores the high personal and professional stakes involved in this complex legal dispute. The threats against his family and the closure of the Wayfarer Foundation mark serious setbacks for Sarowitz’s ambitions to use his wealth to serve humanity through charitable giving.
As the lawsuit advances toward trial, the enduring fallout from this confrontation raises concerns about the toll such disputes can take on individuals beyond the courtroom. Sarowitz’s willingness to financially back Justin Baldoni has not only led to threats against his loved ones but has also disrupted philanthropic support for many vulnerable organizations.
How these events will ultimately affect the resolution of the lawsuit, Sarowitz’s future philanthropic efforts, and the public reputations of all parties involved remains to be seen.
Our Reader’s Queries
Q. Is Blake Lively a Nepo baby?
A. Although she doesn’t openly show off her Hollywood connections, they exist. She didn’t follow the typical “nepo baby” path by acting in a big film as a child, but her journey to fame wasn’t completely out of the blue.
Q. Why are Taylor Swift and Blake Lively fighting?
A. The conflict started when Lively sued Baldoni in December 2024, claiming sexual harassment and retaliation. Baldoni responded with a major countersuit, accusing Lively of defamation and extortion and involving Swift in the situation.
Q. Is Blake Lively a Nepo child?
A. Yes, Blake Lively is considered a “nepo baby,” which describes actors with family connections in the entertainment world. Her parents, Elaine and Ernie Lively, were also actors.
Q. Why did Taylor Swift unfriend Blake Lively?
A. It seems Swift has distanced herself from Lively because of the legal issues involving the “Gossip Girl” actress. They used to be known for their strong friendship in Hollywood, often spending time together on outings and activities.
