The legal battle between Blake Lively and Justin Baldoni reached its end this week as the former costars agreed on a settlement — just two weeks before trial. The actors announced the settlement in a joint statement on Monday.
The statement said, in part, “We acknowledge the process presented challenges and recognize concerns raised by Ms. Lively deserved to be heard.” The statement continued, “We remain firmly committed to workplaces free of improprieties and unproductive environments. It is our sincere hope that this brings closure and allows all involved to move forward constructively and in peace, including a respectful environment online.”
Unfortunately for those who really want to know, the actors didn’t disclose the terms of their settlement. But, Baldoni’s lawyer, Bryan Freedman, said on TMZ Live that the settlement was a huge victory for his client. He continued, “it was an incredible opportunity, and I don’t think you pass up an incredible opportunity.”
Trial Had Been Scheduled for May 18
The settlement came as a surprise to some legal experts and members of the press who had been following the story. The actors’ legal teams had been gearing up for a contentious and high-profile trial, which was scheduled to start on May 18 in federal district court in Manhattan. The New York Times reported that there had been no hint of settlement talks during a pre-trial hearing held last week.
Additionally, a February court-ordered settlement conference had been unsuccessful, and Baldoni’s lawyer told the press afterward that he did not know if the parties would resume talks.
The Lawsuit Started With Allegations of a Hostile Work Environment
The matter began in December 2024, when Lively filed a complaint with the California Civil Rights Department against Baldoni and others involved in the production of the movie It Ends With Us. Her filing included excerpts from thousands of pages of text messages and emails that she’d obtained through a subpoena.
Lively alleged that, during production of It Ends With Us, there was a hostile work environment and inappropriate conduct on set. Lively’s claims involved unsettling incidents related to her co-star Justin Baldoni, as well as one of the producers of the film, Jamey Heath, who is CEO of the film’s production company, Wayfarer Studios.
Lively said that they repeatedly violated her physical boundaries and made sexual and other inappropriate comments to her. She claimed that, at one point, Baldoni showed her a video of his wife giving birth. (Read more about the controversy from It Ends With Us.)
Lively Also Alleged a Smear Campaign
As part of her lawsuit, Lively alleged that she was the victim of a smear campaign after she raised concerns of sexual harassment on set. She was bashed on social media as old interviews of her surfaced that painted her in an unflattering light.
Lively alleged that these were part of a sophisticated, multi-tiered smear campaign orchestrated by Baldoni and his public relations team with one goal — to damage Lively’s reputation in retaliation for speaking out about misconduct on set. The smear campaign was described in an article published in the New York Times with the title “We Can Bury Anyone.”
Baldoni denied these claims. Baldoni’s attorney, speaking to the press again, said that they were completely false and outrageous.
Baldoni Filed a Countersuit, Which Was Dismissed
Baldoni also filed a $400 million countersuit against Lively, her husband Ryan Reynolds, and their publicist. Baldoni’s countersuit alleged defamation, extortion, and more. But, it was ultimately dismissed in June 2025 in what Page Six called a “shocking legal twist.”
The “twist” was that Baldoni’s countersuit didn’t meet the requirements for Lively and the others to be liable for defamation under applicable law. The court dismissed the defamation-related claims, but allowed Baldoni to amend other claims against Lively. Ultimately, the lawsuit was officially terminated after Baldoni failed to file an amended complaint.
Most recently, in April 2026, much of Lively’s case was gutted, too. Federal Judge Lewis Liman threw out 10 of Lively’s 13 claims against Baldoni, including sexual harassment, defamation, and conspiracy. But three of her claims had been proceeding to trial — breach of contract, retaliation, and aiding and abetting in retaliation. Those were the matters that would have been addressed at trial if a settlement hadn’t been reached before May 18.
Is This Over? Does The Settlement Mean This Ends With Us?
While they’ve reached a settlement, Blake Lively is still seeking attorneys’ fees and damages related to Justin Baldoni’s lawsuit. So, there will be some minor legal action yet to come. And Variety reported that “More information about this confidential settlement will be on the court’s docket in the coming days.” Meanwhile, both actors will probably take some time to move forward with their lives and careers after this tense legal battle.
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