AceShowbiz - Blake Lively and Justin Baldoni have reached a settlement, ending their protracted legal conflict just two weeks before the scheduled trial, RadarOnline.com reports. The dispute began after Lively filed a sexual harassment lawsuit against Baldoni, who directed and co-starred with her on the film It Ends With Us, and also included claims against his publicists for allegedly orchestrating a smear campaign following their collaboration.

On Monday, May 4, the legal teams representing both parties issued a joint statement confirming the settlement. Lawyers for Lively, Michael Gottlieb and Esra Hudson, alongside Baldoni's attorneys Bryan Freedman and Ellyn Garofalo of Wayfarer, expressed pride in the movie they created together. The statement read: "The end product - the movie It Ends With Us - is a source of pride to all of us who worked to bring it to life. Raising awareness, and making a meaningful impact in the lives of domestic violence survivors - and all survivors - is a goal that we stand behind."

The statement further acknowledged the difficulties encountered during the process and recognized that Lively's concerns deserved attention. It emphasized a shared commitment to maintaining workplaces free of misconduct and fostering respectful environments. The hope was expressed that the settlement would bring closure and allow all parties to move forward peacefully, including in online spaces. Details of the settlement terms remain undisclosed.

The legal battle had been ongoing for over a year. Lively initially filed suit in December 2024, alleging sexual harassment by Baldoni. In response, Baldoni countersued for $400 million, targeting Lively and her husband, Ryan Reynolds. However, the momentum initially favored Lively, as a judge dismissed Baldoni's countersuit in June 2025. Additionally, his $250 million defamation lawsuit against the New York Times was also thrown out.

Despite this early setback for Baldoni, the dynamics shifted last month when U.S. District Judge Lewis Liman dismissed 10 of the 13 claims brought by Lively, including the primary allegations of harassment, defamation, and conspiracy. The judge allowed only the lesser claims related to retaliation, aiding and abetting retaliation, and breach of contract to proceed. This meant the jury would hear Lively's retaliation claims, which included accusations that Baldoni hired publicists to plant negative stories about her.

Judge Liman clarified that Lively was considered an independent contractor rather than an employee, which affected her ability to bring sexual harassment claims under Title VII of the Civil Rights Act of 1964, the law prohibiting workplace discrimination based on gender. This legal nuance played a significant role in the narrowing of her case.

Previously, a court-ordered mediation session on February 11 had failed to produce any resolution, with both sides leaving without progress toward settlement. The feud between the two had become increasingly acrimonious, with Lively making serious allegations in her complaint. She claimed that Baldoni was primarily interested in her sexual appeal and that he once threw a tantrum in her dressing room. According to the suit, Baldoni made the cast and crew wait for hours while he cried, upset over social media comments about Lively's appearance based on paparazzi photos taken on set.

The public dispute also sparked backlash against Lively and her husband. Some sources indicated that the couple had considered relocating to the U.K. amid the controversy. Industry insiders suggested that Lively believed there were top-tier filmmakers who might offer her a fresh start, as many in Hollywood were reportedly avoiding her. Media personality Piers Morgan notably criticized Lively, asserting that she was damaging her reputation with the lawsuit.

The legal war between Lively and Baldoni drew significant public attention, reflecting broader conversations about workplace conduct and accountability within the entertainment industry. While the specifics of the settlement remain private, the agreement marks an end to a high-profile dispute that had threatened to overshadow the release and message of It Ends With Us, a film centered on raising awareness about domestic violence and its survivors.

Both parties emphasized their shared commitment to the film's cause and expressed hope that the resolution would enable them to move forward constructively. The settlement allows all involved to focus on the positive impact of their work rather than ongoing legal battles and public disagreements.