Blake Lively and Justin Baldoni have finally reached a settlement in their protracted and highly publicized legal battle. The agreement, announced on May 4, came just two weeks before the two stars were set to face each other in court. In a joint statement, their attorneys said they were proud of the film It Ends With Us and committed to moving forward constructively.
The news marked the end of a saga that began in December 2024, when Lively filed a complaint against Baldoni, his production company Wayfarer Studios, and several associates. The complaint accused them of launching a retaliatory smear campaign after she voiced concerns about sexual harassment on set. Baldoni and his team denied all allegations, and the legal fight escalated into dueling lawsuits, public revelations, and a media firestorm that lasted nearly a year and a half.
The Film That Started It All
It Ends With Us, based on Colleen Hoover's best-selling novel, debuted in theaters on Aug. 9, 2024. Lively starred as Lily Bloom, a woman navigating a complicated relationship with her husband Ryle, played by Baldoni, who also directed the film. The movie became a box office hit and sparked conversations about domestic violence. However, fans quickly noticed tension between the two stars during the press tour, and neither appeared to promote the film together after its premiere.
Within months, that tension spilled into the courtroom. On Dec. 20, 2024, Lively filed a California Civil Rights Department complaint, alleging that Baldoni and Wayfarer Studios had orchestrated a sophisticated press campaign to damage her reputation. The complaint detailed instances of what she described as invasive, unwelcome behavior on set, including improvised scenes that made her uncomfortable. She also claimed that after she raised concerns, the studio hired crisis managers to plant negative stories about her.
Baldoni's Denial and Countersuit
Baldoni's attorney, Bryan Freedman, immediately fired back, calling the allegations “completely false, outrageous and intentionally salacious.” He argued that Lively was trying to “fix” her own negative reputation from the film's promotional tour. On Dec. 21, 2024, The New York Times published an in-depth article based on Lively's complaint, including text messages that appeared to show Baldoni's team discussing ways to attack her. The article went viral, and Baldoni was quickly dropped by talent agency WME.
Just days later, on Dec. 31, Baldoni and several co-defendants filed a $250 million lawsuit against The New York Times, accusing the paper of libel and relying on Lively's “unverified and self-serving narrative.” The Times responded that its story was “meticulously and responsibly reported.” That same day, Lively filed a federal lawsuit in New York against Baldoni and Wayfarer, repeating her allegations of sexual harassment, retaliation, and emotional distress.
The legal battle then expanded in January 2025. Baldoni filed a countersuit against Lively, her husband Ryan Reynolds, her publicist Leslie Sloane, and Sloane's PR firm, accusing them of defamation and extortion. The suit alleged that Lively seized control of the film and colluded with her team to “tar and feather” Baldoni in the press. Lively's attorneys dismissed the suit as “another chapter in the abuser playbook.”
Key Revelations and Public Reactions
As the legal process unfolded, a flood of leaked materials surfaced. In January 2025, Baldoni's team released behind-the-scenes footage from It Ends With Us that they said refuted Lively's claims. Lively's lawyers countered that the footage actually corroborated her discomfort. A seven-minute voice memo from Baldoni to Lively also leaked, in which he apologized for his behavior during a script meeting.
Public figures took sides. Colleen Hoover, the author of the novel, voiced strong support for Lively on social media. Actress Jenny Slate, who appeared in the film, issued a statement praising Lively's bravery. Other cast members and stars also expressed solidarity with her. Meanwhile, Baldoni's legal team launched a website detailing his version of events, promising to release “every single text message” between the two actors.
In February 2025, Lively filed an amended complaint that included claims from two other women who said they felt uncomfortable around Baldoni on set. The women were not named, citing a dangerous climate of threats. Baldoni's attorney dismissed the claims as “unsubstantial hearsay.”
Court Rulings and Dismissals
The litigation took several turns. In June 2025, a judge dismissed Baldoni and Wayfarer's countersuit against Lively, ruling that they had not proven their claims of defamation and extortion. Then, in April 2026, a judge dismissed 10 of the 13 claims in Lively's lawsuit, including her central sexual harassment allegation. The judge noted that Lively was an independent contractor, not an employee, so the state law she cited did not apply. However, she was allowed to proceed with claims of retaliation.
Despite the partial dismissal, both sides prepared for trial. But on May 4, 2026, their attorneys announced a settlement. The joint statement acknowledged that “the process presented challenges” and that “concerns raised by Ms. Lively deserved to be heard.” It also expressed a commitment to workplaces “free of improprieties and unproductive environments.”
Aftermath and Legal Fees
Even after the settlement, legal proceedings continued. In June 2026, Lively's lawyers filed a motion seeking about $8 million in attorneys' fees and litigation costs from Baldoni and Wayfarer. A judge granted the request for attorneys' fees but not for damages, noting that there was no evidence Lively acted with malice. Her attorneys indicated they might seek damages through other legal mechanisms.
Baldoni's attorney, however, maintained that Lively “received nothing” in the settlement and continued to deny all allegations. In a statement, he said, “There was no sexual harassment. There was no retaliation. There was no smear campaign.” The parties continued to spar over the fee amount in court filings throughout July.
For Lively, the aftermath also meant returning to the public eye. She attended the 2026 Met Gala just hours after the settlement was announced and was later seen at the World Cup final. Notably, she and Reynolds were absent from Taylor Swift and Travis Kelce's wedding in July, a detail that fueled speculation about their friendship.
Baldoni, meanwhile, resurfaced on social media in July. In an Instagram video, he and his wife Emily addressed their silence over the past two years, thanking supporters and acknowledging the difficulty of the period. They said they were focused on their family and future projects.
Timeline of a Legal Saga
December 2024: The Complaints Begin
On Dec. 20, Lively filed her California Civil Rights Department complaint. The next day, The New York Times published its exposé. Baldoni was dropped by WME, and several cast members spoke out in Lively's defense. On Dec. 24, Baldoni's former publicist Stephanie Jones sued him and his team, alleging they conspired to steal her clients and publicly blame her for the smear campaign. On Dec. 31, Baldoni sued The New York Times for $250 million, and Lively filed her federal lawsuit.
January 2025: Countersuits and Leaks
Baldoni sued Lively and Reynolds on Jan. 16. His attorney later released behind-the-scenes footage and a voice memo. Lively and Reynolds sought a gag order against Baldoni's attorney, and Baldoni amended his lawsuit to include The New York Times. He also launched a website with his timeline of events.
February 2025: New Allegations and Personnel Changes
Lively filed an amended complaint adding two other accusers. Her publicist Leslie Sloane sought to be dismissed from Baldoni's countersuit. Meanwhile, Lively hired a former CIA deputy chief of staff to advise on communications strategy.
2025-2026: Court Decisions and Settlement
In June 2025, Baldoni's countersuit was dismissed. In April 2026, most of Lively's claims were dismissed. Two weeks before trial, the settlement was announced on May 4. The final resolution of attorneys' fees remained pending, but both sides expressed a desire to move forward.
As the dust settled, the entertainment industry and the public were left to reflect on a bitter dispute that turned a hit film into a legal war. For Lively and Baldoni, the settlement may have ended their courtroom battle, but the conversations it sparked about harassment, retaliation, and the power of media will likely continue for years.
Source: Yahoo Entertainment News