Blake Lively and Justin Baldoni settle Hollywood legal dispute avoiding trial

A high-profile legal dispute between actors Blake Lively and Justin Baldoni, which threatened to expose the darker aspects of Hollywood moviemaking, has been settled, averting a contentious trial. The co-stars, who became courtroom adversaries, reached an agreement on Monday, just two weeks before they were due to face off in a New York court.

The civil case stemmed from claims made by Ms Lively that Mr Baldoni conspired with publicists to pre-emptively damage her reputation after she privately accused him of sexual harassment on the set of their 2024 film, It Ends With Us. Mr Baldoni, who directed and starred in the dark romantic drama, vehemently denied the harassment allegations and orchestrating a smear campaign, instead claiming Ms Lively’s complaints were an attempt to seize creative control of the movie.

In a joint statement released through their lawyers, Ms Lively and Mr Baldoni said: "Raising awareness, and making a meaningful impact in the lives of domestic violence survivors — and all survivors — is a goal that we stand behind. It is our sincere hope that this brings closure and allows all involved to move forward constructively and in peace, including a respectful environment online." The terms of the settlement remain undisclosed.

The legal battle began at the end of 2024 when Ms Lively, 38, sued Mr Baldoni, 42, and his production company, Wayfarer Studios. Weeks later, Mr Baldoni filed a counter-suit against Ms Lively, her husband, actor Ryan Reynolds, and their publicist, alleging defamation and extortion. A federal judge in Manhattan had previously dismissed some of each actor’s claims, including Mr Baldoni’s defamation and extortion lawsuit last June, and Ms Lively’s sexual harassment claims in April, ruling she could not pursue them under federal law as she was an independent contractor, not an employee.

Evan Agostini/Invision/AP

The film, an adaptation of Colleen Hoover’s bestselling 2016 novel about a relationship descending into domestic violence, was released in August 2024. Despite exceeding box office expectations, it faced criticism for allegedly glamorising abuse. The fractious falling out between its two leads ultimately overshadowed the film’s message and success.

Ms Lively’s lawsuit detailed allegations that Mr Baldoni made inappropriate comments about her appearance, violated physical boundaries during a love scene, and pushed for nudity against her wishes during a birth scene. Mr Baldoni maintained that his actions were within the normal creative process of filmmaking. The judge, in dismissing the harassment claims, acknowledged the complexity, noting that creative artists "must have some amount of space to experiment within the bounds of an agreed script without fear of being held liable for sexual harassment."

The now-averted trial was set to focus on Ms Lively’s claim that Mr Baldoni and the studio retaliated against her by hiring publicists to turn public opinion against her. Her lawyers alleged this campaign involved a "digital army" posting negative content and feeding "manufactured content to unwitting reporters" to damage her image, businesses, and family. Conversely, Mr Baldoni’s legal team claimed Ms Lively strategically manipulated his public image, leveraging her famous connections.

In their joint statement, the parties affirmed their recognition that Ms Lively’s concerns "deserved to be heard" and reiterated their commitment to "workplaces free of improprieties and unproductive environments." They concluded by stating: "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."