In a major development in the high-profile legal dispute surrounding It Ends With Us, co-stars Blake Lively and Justin Baldoni have reached a settlement that brings a temporary close to parts of the case—though no financial compensation has been exchanged, according to multiple reports confirmed by Variety.
While the agreement marks a significant procedural shift, the broader legal conflict remains unresolved, with key motions still pending before the court.
Addressing the confidentiality surrounding the settlement, a source clarified, “Anyone purporting to confirm the terms of the confidential settlement at this point is misleading you. More information about this confidential settlement will be on the court’s docket in the coming days,” as quoted by Variety.
Earlier this week, Lively agreed to drop her three remaining claims against Wayfarer Studios, the production company co-founded by Baldoni, along with its public relations team. This move effectively prevents a federal trial that had been scheduled to begin on May 18.
Lively had previously alleged that Wayfarer retaliated against her after she accused Baldoni of sexual harassment during the production of the film. Most of her original claims, including all sexual harassment allegations, were dismissed last month.
However, the legal battle is not fully concluded. Lively continues to pursue a motion seeking attorneys’ fees and damages tied to Baldoni’s defamation lawsuit, which had originally sought USD 400 million. The suit, filed in January 2025, accused Lively, her husband Ryan Reynolds, and their publicists of making false claims to damage Baldoni’s reputation and gain control over the film.
That defamation case was dismissed in June by Judge Lewis Liman, who ruled that Lively’s statements were made within legal filings and therefore protected.
Lively has also sought treble and punitive damages under California’s 2023 law, the Protecting Survivors from Weaponized Defamation Lawsuits Act. While the judge initially declined to rule on its applicability, he allowed her to renew the motion, which she did in September.
Baldoni’s legal team has strongly opposed the request, calling it “draconian” and questioning its constitutional and jurisdictional basis.
The case has drawn attention from advocacy groups, including Equal Rights Advocates and the California Employment Lawyers Association, who argued, “Ms Lively is a public figure, and this lawsuit has captured the attention of the American public. The outcome of this motion will affect the decision-making of other victims of sexual harassment and assault,” as quoted by Variety. The settlement marks a partial closure, but not the end of the legal dispute.
