Blake Lively and Justin Baldoni have settled most of their legal dispute tied to “It Ends With Us,” but a key issue remains in court.
In a surprising turn of events, the actress is now specifically seeking damages under a California anti-retaliation law after Baldoni’s defamation suit against her was dismissed.
With the trial avoided, a judge will now decide any final compensation owed, and according to Blake Lively and Justin Baldoni’s settlement, they must agree to whatever the judge orders with no appeals.
Lively and Baldoni may have settled most of their explosive legal fight tied to “It Ends With Us,” but one major issue is still heading to court.
Newly filed documents reveal Lively is seeking financial damages from Baldoni under a California law designed to protect people who report workplace harassment from retaliation.
The move comes after Baldoni’s defamation lawsuit against her was dismissed, opening the door for Lively to pursue attorney fees, along with compensatory and punitive damages.
The conflict began after Lively accused Baldoni of sexual harassment, sexual misconduct, and leading a smear campaign during production of the film in 2024.
Baldoni denied the allegations and responded with a countersuit, which has since been thrown out by the judge. Instead of a jury trial, the court alone will now decide whether Baldoni and the other defendants owe Lively money, and if so, how much.
According to TMZ, one significant part of the former co-stars’ settlement agreement is that neither party will challenge the judge’s final ruling through an appeal, effectively making the upcoming decision final.
Blake Lively And Justin Baldoni’s Settlement Labeled A ‘Victory’ By The Actress’s Lawyer
The settlement came just weeks before the highly anticipated trial was set to begin, with both Lively and Baldoni expected to testify in court.
Over the course of the legal battle, filings exposed private text messages and emails involving the two stars and several high-profile figures in their circle.
Lively’s attorneys, Michael Gottlieb and Esra Hudson, described the settlement as a “resounding victory” for the actress, arguing it sends a strong message against using lawsuits and public smear tactics to intimidate people who come forward with harassment claims.
They added that by acknowledging Lively’s concerns “deserved to be heard,” the defendants had effectively put an end to claims that she fabricated allegations of harassment or retaliation.
Sources Claim Blake Lively Was Never After Financial Gain In Her Legal Feud With Justin Baldoni
Sources close to the former “Gossip Girl” star insist her case against Baldoni was never about financial gain.
Instead, they say Lively’s focus has always been “about exposing bad actors who are also harming others.”
According to those sources, Lively refused to settle until documents tied to the alleged smear campaign became public, records that have since reportedly triggered additional lawsuits and investigations.
“She didn’t settle her claims until the documents exposing the bad actors behind smear campaigns were made public – documents that have led to other lawsuits and investigations,” the source told TMZ. “With this motion, she is breathing life into a groundbreaking statute designed to protect survivors from retaliatory lawsuits.”
Lively’s team also argues that the latest filing reinforces a groundbreaking California statute designed to protect survivors from retaliatory legal action.
The Former Co-Stars Released A Joint Statement On Their Settlement
In a joint statement released after the settlement, attorneys for both sides said “It Ends With Us” remains “a source of pride” for everyone involved in bringing the project to life.
They also emphasized their shared support for survivors of domestic violence and the importance of maintaining safe and respectful workplaces.
The statement acknowledged that the legal process had been difficult and noted that the concerns raised by Lively “deserved to be heard.”
It concluded with both parties expressing hope that the settlement would finally allow everyone involved to move forward peacefully and focus on the future.
Legal Experts Weigh In On Why Blake Lively And Justin Baldoni’s Settlement Was Unavoidable
Meanwhile, legal experts say the settlement was hardly unexpected following the dismissal of several major claims and the growing risk that a lengthy public trial could further damage both stars’ reputations.
According to The Hollywood Reporter, Attorney Neama Rahmani said continuing the case “and spending weeks and hundreds of thousands of dollars to litigate the breach of contract and smear campaign claims alone” likely no longer made financial or strategic sense for either side.
He added that the resolution may still leave the public questioning what truly happened between the two celebrities behind closed doors.
Litigator Tre Lovell also noted that in celebrity disputes, public perception often matters more than courtroom victories.
According to Lovell, protecting reputations, careers, and long-term brand value usually becomes the top priority, with legal strategies often shaped around how the fight is playing out in the public eye.
