Billionaire Software Mogul Embroiled in Hollywood Harassment Scandal
Steve Sarowitz, the billionaire founder of payroll software giant Paylocity, finds himself at the center of a storm engulfing Hollywood. His foray into the film industry with Wayfarer Studios, co-founded with actor Justin Baldoni, was meant to be a vehicle for positive change. Now, it’s embroiled in a bitter legal battle involving accusations of sexual harassment, smear campaigns, and millions of dollars at stake.
The controversy stems from the production of "It Ends with Us," a film adaptation of Colleen Hoover’s bestselling novel about domestic violence. Blake Lively, the film’s star, alleges that Baldoni, who also directed the film, sexually harassed her on set. She further claims that Baldoni, Sarowitz, and other Wayfarer associates orchestrated a campaign to tarnish her reputation after she voiced her concerns. The situation escalated dramatically at the film’s premiere, with Lively refusing to share the red carpet with Baldoni, and Sarowitz allegedly threatening to spend a fortune to ruin her and her family.
Sarowitz vehemently denies Lively’s accusations, characterizing them as "vicious lies." He maintains that he and Wayfarer are the true victims of harassment and a smear campaign. He is prepared to leverage his considerable wealth, estimated at $2.5 billion, to defend himself, Baldoni, and their studio. This unwavering support stems from a deep personal connection with Baldoni, forged over shared Baháʼí faith and a desire to create films with positive social impact.
Wayfarer has launched a counter-offensive, suing the New York Times for its reporting on Lively’s initial complaint. They claim the newspaper’s coverage was misleading and lacked crucial context that would have exonerated them. They presented text message evidence and argued that any negative public reaction to Lively was organic, a consequence of her own "tone-deaf" promotion of a film dealing with sensitive subject matter. Lively’s legal team, however, insists that the harassment and retaliation are undeniable and that Wayfarer’s attempts to "blame the victim" are a classic deflection tactic.
Sarowitz’s involvement in the film industry began with his newfound fortune following Paylocity’s successful IPO. Inspired by a spiritual awakening and his embrace of the Baháʼí faith, he sought to use his wealth for philanthropic purposes, including funding films with uplifting messages. His partnership with Baldoni, whom he met through a documentary project about the Baháʼí faith, seemed like the perfect vehicle for this ambition. Sarowitz provided the financial backing, while Baldoni brought his Hollywood experience and creative vision.
"It Ends with Us," with its $25 million budget and eventual $351 million box office gross, represented Wayfarer’s biggest project to date. Sarowitz, speaking just months before the film’s release, expressed pride in its message of female empowerment and its alignment with his personal values. The irony of his current predicament, facing accusations of silencing and retaliating against a woman speaking out against alleged harassment, is stark. The legal battle is far from over, with both sides preparing for a protracted and expensive fight. Wayfarer has indicated a second lawsuit is imminent, this time directly targeting Lively and her team. The clash between a billionaire software entrepreneur and a Hollywood star promises to be a closely watched and potentially explosive affair.
