Breaking News: Taylor Swift and Blake Lively’s Friendship Has ‘Halted,’ the Singer ‘Wants No Part in This Drama’ (Exclusive Sources)

As Lively’s legal battle against Justin Baldoni continues to heat up, multiple sources tell PEOPLE exclusively that the actress’s relationship with Swift is struggling as the singer faces a subpoena by Baldoni’s legal team.

“Their friendship has halted,” says a source close to Swift. “Taylor wants no part in this drama.”

Another insider says that Lively, 37, and Swift, 35 — whose friendship can be documented going back to 2014 — are indeed “taking some space,” but adds that they are “not no longer friends.”

In late April, a source told PEOPLE that Swift “was really hurt” after being implicated in Lively’s legal fight but that the stars were working to “put it all behind them.” According to a complaint Baldoni filed in January, Lively referred to the pop star as one of her “dragons” in an alleged text exchange.

Now, however, a source close to the legal battle says the subpoena — which was served on May 8 — has “fractured” the “fragile peace” between Lively and Swift, who is godmother to the actress’ four kids with her husband, Ryan Reynolds, 48.