Blake Lively knew that she and Taylor Swift would be 'able to recover' their friendship, a source tells PEOPLE exclusively, after the pop star was implicated in Lively's ongoing legal drama with Justin Baldoni over behind-the-scenes conflict on their movie ‘It Ends with Us.

Then, the singer got attention after being seemingly name-dropped in Justin Baldoni’s lawsuit in reference to texts sent between the director and Lively about a meeting they had at the actress’s home. Apparently, Swift and Ryan Reynolds were also there, and in one text, the A Simple Favor star called them her “dragons.”

Megyn Kelly didn’t shy away from speaking out against her fellow Time100 honoree Blake Lively at the publication’s New York City gala on Thursday night. When asked about Lively’s controversial inclusion on Time’s Most Influential People list,