Blake Lively and Justin Baldoni Settlement Details Revealed Amid Ongoing Legal Battle

Blake Lively and Justin Baldoni, stars of the 2024 film It Ends With Us, have settled their highly publicized legal dispute just weeks before their case was set to go to trial. The settlement, filed in federal court in New York, marks the end of a bitter and protracted battle that began with Lively’s allegations of sexual harassment and a smear campaign against her during the film’s production and promotional phase.

The settlement does not include a monetary payout to Lively, according to court documents and legal sources. However, it leaves open the possibility for Lively to pursue significant financial penalties against Baldoni and Wayfarer Studios, the production company behind the film. Specifically, Lively retains her right to seek attorney’s fees, treble damages, and punitive damages under California’s Protecting Survivors from Weaponized Defamation Lawsuits Act (Civil Code Section 47.1). This law, introduced in 2023, is designed to protect survivors of harassment and abuse from retaliatory legal action.

In a joint statement provided to Rolling Stone, lawyers for both parties acknowledged the challenges presented by the legal process and expressed a commitment to fostering workplaces free of impropriety. They stated, “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 also noted, “We acknowledge the process presented challenges and recognize concerns raised by Ms. Lively deserved to be heard. We remain firmly committed to workplaces free of improprieties and unproductive environments.”

Baldoni’s legal team, including his lawyer Ellyn Garofalo, signed the settlement agreement, which also stipulates that Lively’s pending motion for damages will not be withdrawn and remains pending before the court. Baldoni and Wayfarer Studios have waived their right to appeal the court’s determination on this motion, meaning the decision will be final. This could result in substantial financial consequences for Baldoni and the production company, as the law allows for damages to be tripled.

Lively’s legal team described the settlement as a “resounding victory” for the actress. Her attorneys, Sigrid McCowley, Esra A. Hudson, and Michael Gottlieb, emphasized that Baldoni and Wayfarer Studios will now face the court’s determination on the pending motion, with no possibility of appeal. “They have waived their right to appeal,” McCowley told Deadline. “In other words, this will be the final judgment by this court, and it will not be able to hold things up with years of appeals.”

The legal battle between Lively and Baldoni began in December 2024, when Lively filed a complaint with the California Civil Rights Department alleging sexual harassment and a smear campaign. She later sued Baldoni and Wayfarer Studios in the Southern District of New York. Baldoni responded with a $400 million countersuit, accusing Lively of defamation, but that claim was dismissed by the court. Baldoni also sued The New York Times for defamation over its reporting on Lively’s allegations, but that suit was also dismissed.

By the time of the settlement, the scope of the case had narrowed significantly. Earlier this month, Judge Lewis Liman dismissed 10 of Lively’s 13 claims, leaving only allegations of retaliation and breach of contract to be addressed at trial. Jury selection was scheduled to begin on May 18, 2026, with the trial expected to last six to eight weeks.

The settlement allows both parties to move forward, though the legal process is not entirely over. The court will still determine the outcome of Lively’s motion for damages, which could have major financial implications for Baldoni and Wayfarer Studios. For now, the focus remains on the film’s message and the broader conversation about domestic violence and workplace conduct in Hollywood.