After a two-year legal battle, Blake Lively and Justin Baldoni have reached a legal settlement in their explosives case, except for this one issue.
Blake Lively and Justin Baldoni’s legal battle ends
Blake Lively and Justin Baldoni have reached a settlement after nearly a year and a half of legal disputes.
Blake Lively and Justin Baldoni suddenly reached a legal settlement earlier this month after a nearly two-year battle over allegations of dueling misconduct and smear campaigns surrounding “It Ends with Us.”
The news comes just as Lively, 38, was about to hit the Met Gala red carpet on May 4, wearing a flowing pastel Atelier Versace dress and climbing the Metropolitan Museum of Art’s iconic staircase with a big smile on her face for the cameras. It was a return to glamorous life for the embattled Gossip Girl actress, who had a nasty public feud with Baldoni over claims of sexual harassment and retaliation.
“It’s no coincidence that Lively appeared on the red carpet just hours after the settlement was announced. It was a tactical effort to begin the rebranding process in Hollywood and in the hearts of households across America,” said Doug Eldridge, founder of Achilles PR.
But just three days later, on May 7, Ms. Lively’s lawyers announced that they would continue to pursue damages against Mr. Baldoni, seeking compensation for attorney’s fees and other financial penalties stemming from his $400 million counterclaim.
“There is no straight path for either, and it will inevitably be an uphill slope, at least in the minds of fans and consumers,” Eldridge added. “For a Hollywood star, the most important thing is the audience.”
Blake Lively and Justin Baldoni’s lawsuit made headlines before surprise settlement
Lively first sued Baldoni in late 2024, alleging abuse and inappropriate conduct on the set of Colleen Huber’s domestic violence drama “It Ends With Us.” She further claimed that when she spoke up about his alleged cheating, he and his team launched a “smear campaign” against her.
Ms. Baldoni, 42, denied the allegations and filed a countersuit accusing Ms. Lively and her husband, Ryan Reynolds, of defamation, sparking a public controversy that was scheduled to culminate in a federal trial starting May 18.
Last month, a New York judge dismissed 10 of Lively’s 13 claims, and the parties quickly reached a settlement, calling for peace and closure in a highly amicable joint statement released on May 4. But Lively and her team now hope to finalize the legal battle by seeking damages.
“By agreeing to this settlement and waiving the right to appeal, Justin Baldoni and each of the defendants will be held personally liable for abusing the legal system to silence and intimidate Ms. Lively,” Lively’s attorneys Michael Gottlieb and Esra Hudson said in a statement, according to the Los Angeles Times.
“They are certainly trying to end this matter once and for all, whether or not it leads to a full evidentiary hearing. This matter is pending, whether or not it leads to a full evidentiary hearing,” said Tre Lovell, a civil trial attorney who is not involved in the matter. “Interestingly, normally all the claims would be settled. That’s what happens most of the time. My guess is that Baldoni’s team probably tried to make that happen.”
However, according to reports from TMZ and Variety, no money was exchanged in the settlement.
“If that were the case, it probably would have still been a good deal for[Baldoni]to settle it, save himself the exorbitant trial attorney fees, and try to contest the punitive damages claim in court that[Lively’s team]wants to preserve,” LaBelle added.
‘Win’ over both Blake Lively and Justin Baldoni
Ultimately, it’s no surprise that Lively received no compensation in the settlement.
“Blake Lively doesn’t need the money. At this point, given the dirty laundry that’s come out, I wish she hadn’t filed this lawsuit,” Lovell says. “She’s putting her foot in the fire for legal fees. In a way, I think it’s her way of saving face.”
Last summer, a judge dismissed Baldoni’s $400 million countersuit, saying Lively’s comments were protected by anti-SLAPP laws that bar individuals accused of harassment from suing their accusers for speaking out about their experiences.
“Basically, if someone makes a sexual harassment claim, you can’t pursue them for defamation unless they intentionally made a false statement,” Lovell said. “It has to do with (Lively) still being a sexual harassment advocate. She could save some face by relying on that law and seeking some compensation.”
Within days of reaching the settlement, Lively’s lawyers released a statement calling it a “huge victory” for the “A Simple Favor” star, but Baldoni’s team countered with a statement calling it a “complete victory” for their side.
“Both parties have a right to claim victory,” said Nisha Verma, an employment lawyer who is not involved in the case. “Each party prevailed on important and novel issues within their respective cases. . . . It can be said that there was excellent counsel all around on these claims.”
Baldoni, Lively must win back the public after going for the ‘jugular’
So what’s happening now? Once the dust settles, Mr. Lively and Mr. Baldoni will be tasked with repairing their reputations, and attention will inevitably turn to the next high-profile celebrity case. But repairing an image is easier said than done.
“With the lawsuit being made public, it looked like both of them were trying to attack the carotid artery,” Verma said. Ultimately, “their feud may receive less media coverage, allowing the public to move on and focus on their jobs. Millennials have grown up with Lively, so it’s unlikely they’ll abandon her completely, even if they dislike some of the litigation activity.”
However, Verma continues, “I don’t think my bond with Baldoni is that strong.” “More people know him than ever before because of this lawsuit. So he’s gotten through this and turned the page on a new page. I think this probably hurt his reputation more than it hurt her reputation.”

