New York, New York - Taylor Swift has found herself pulled into her longtime pal Blake Lively's legal battle against co-star Justin Baldoni, and according to insiders, the pop star was "really hurt" about the situation. But where does their friendship stand today?

A new report from People has revealed that Swift was not happy about her name being included in Justin Baldoni's countersuit against Lively, which revealed alleged text messages from the Gossip Girl actor that referred to Swift as one of her "dragons" ready to protect her.

"Blake knew she and Taylor would come back from this at some point and that their friendship wasn’t done for good," an insider said.

Though the 35-year-old Grammy winner was "hurt" by the situation, she is now said to be "relieved they were able to recover from this and put it all behind them, because it wasn't something she took lightly."

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Swift herself has not yet commented publicly on the legal dispute, but the latest updates on the case have revealed that the Karma artist could be subpoenaed very soon.

The legal proceedings between Baldoni and Lively, who co-starred in the romantic drama flick It Ends With US, began last December when the 37-year-old accused Baldoni of sexual harrassing her on set.

In her initial lawsuit, Lively also alleged that the 41-year-old director hired a PR team to conduct a retaliatory smear campaign to discredit her.

Baldoni denied the claims and subsequently sued Lively and her husband, Ryan Reynolds, for alleged defamation and extortion, arguing that the couple sought creative control over It Ends With Us, which Baldoni also directed.

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Baldoni has also claimed that he felt pressured by Swift and Reynolds into accepting Lively's changes to the film's script, as the two stars had been present when Lively showed her proposed alterations to the Jane the Virgin actor.

Swift, Lively, and Reynolds have all been close friends for over a decade, and the Fortnight artist is even the godmother of the couple's four children: James, Inez, Betty, and Olin.