After nearly two years of public acrimony and explosive court filings, the legal war between Blake Lively and Justin Baldoni has officially come to an end. On Monday, May 4, 2026—just two weeks before a high-profile trial was set to begin in New York—legal counsel for both parties confirmed that a settlement has been reached.
The Settlement Avoiding a Hollywood Smear Trial
The agreement, finalized between Lively’s team and Baldoni’s Wayfarer Studios, effectively shuts down a case that threatened to expose the “ugly side” of show business. While the specific financial terms remain confidential, the settlement allows both stars to avoid a public trial where private communications from A-listers like Taylor Swift and Ryan Reynolds were expected to be scrutinized.
In a joint statement, attorneys Bryan Freedman and Ellyn Garofalo (for Wayfarer) and Michael Gottlieb and Esra Hudson (for Lively) expressed a desire for “closure.”
“We acknowledge the process presented challenges and recognize concerns raised by Ms. Lively deserved to be heard,” the statement read. “It is our sincere hope that this brings closure and allows all involved to move forward constructively and in peace.”
The Core of the Conflict
The dispute began in late 2024 following the release of the film adaptation of Colleen Hoover’s It Ends with Us. Lively originally alleged that Baldoni created a hostile work environment and engaged in sexual harassment on set—claims that a federal judge dismissed in April 2024 on technical grounds.
However, the case proceeded on retaliation claims. Lively argued that after she raised concerns, Baldoni and his publicists launched a “coordinated digital smear campaign” to destroy her reputation and “bury” her character in the media. Baldoni vehemently denied these claims, countersuing Lively and her husband, Ryan Reynolds, for defamation and extortion before those claims were also dismissed last June.
Protecting the Film’s Legacy
Despite the personal rift, both parties used the settlement announcement to pivot back to the movie’s core message regarding domestic violence awareness.
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“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,” the lawyers stated. “Raising awareness and making a meaningful impact in the lives of domestic violence survivors is a goal that we stand behind.”
What’s Next for Lively and Baldoni?
With the legal shadow finally lifted, both stars appear ready to move on. Hours after the settlement was announced, Lively made a surprise, triumphant appearance at the 2026 Met Gala, signaling a return to the fashion spotlight. For Baldoni and Wayfarer Studios, the settlement prevents further discovery into their “crisis management” tactics, allowing the director to focus on future projects away from the courtroom.