Blake Lively’s sexual harassment lawsuit against Justin Baldoni ended in a deal neither wanted but their lawyers are laughing all the way to the bank
Well, it ended with the legal teams.
Blake Lively and Justin Baldoni just settled their explosive sexual harassment lawsuit, and neither of them walked away with a single dollar. The real winners here? Their lawyers, who raked in a staggering $60 million combined for what turned out to be an 18-month legal circus that left both actors’ careers in limbo.
According to Page Six, the settlement came down just two weeks before the case was set to go to trial on May 18. Sources say the judge wasn’t exactly thrilled about the prospect of a lengthy, drawn-out trial and pushed both sides to reach an agreement. After weeks of negotiations, Lively and Baldoni finally struck a deal. Hours after the settlement was announced, Lively was spotted at the Met Gala 2026, looking unfazed as she posed for photos on the red carpet.
Lively originally filed the lawsuit against Baldoni in December 2024, accusing him of sexual harassment on the set of It Ends With Us, the film they both starred in and he directed. Baldoni denied the claims and fired back with a $400 million countersuit against Lively, her husband Ryan Reynolds, and their publicist Leslie Sloane, alleging defamation and extortion.
Baldoni’s countersuit was dismissed in June 2025, but the legal battle raged on
Last month, Judge Lewis Liman threw out 10 of Lively’s 13 claims, including sexual harassment, defamation, and conspiracy. Only three claims – breach of contract, retaliation, and aiding and abetting in retaliation – were allowed to proceed. In a social media statement after the judge’s ruling, Lively made it clear that filing the lawsuit was never something she wanted.
“But I brought this case because of the pervasive RETALIATION I faced, and continued to, for privately and professionally asking for a safe working environment for myself and others,” she wrote. She also vowed to keep fighting to “expose the systems and people who seek to harm, shame, silence and retaliate against victims.”
The joint statement released by both parties after the recent settlement was carefully worded, emphasizing their commitment to raising awareness about domestic violence. “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,” the statement read. “Raising awareness, and making a meaningful impact in the lives of domestic violence survivors, and all survivors, is a goal that we stand behind.”
They also expressed their hope that the settlement would bring closure and allow everyone involved to move forward “constructively and in peace, including a respectful environment online.” Meanwhile, industry insiders have been weighing in on the fallout.
Insider opinions are split on who came out worse in the case
“Justin doesn’t have enough value in the market to overcome the suspicion that he may have created an unsafe set. I’m not sure he could cast a movie right now,” one high-level female studio exec said, according to Page Six. Another female executive added, “They both did major damage, but because she’s so established I think she stands a chance of re-emerging better than he does. I would struggle to hire both of them, but I would gamble on her.”
Baldoni, however, might have an easier path to recovery. He’s transitioned more into directing, and most audiences don’t pay much attention to who’s behind the camera. His production company, Wayfarer Studios, can finance its own projects, which gives him more control over his career.
He recently executive-produced Scarlett Johansson’s directorial debut, Eleanor the Great, without any of the drama that surrounded It Ends With Us. Johansson, incidentally, was previously married to Reynolds, adding another layer of awkwardness to the whole saga.
Lively, on the other hand, faces a tougher road ahead. As a leading actor who has proven she can open a film, she’ll need to win back the trust of directors, studios, and financiers. “I think she can be in some TV show,” one male executive said. “But she’s hurt the worst since he can finance his own movies.” Another male said, “Most of Hollywood knows what’s up. Yeah, maybe he’s a weirdo, but he didn’t commit any crime. Blake did this to herself whether they will admit it or not.”
The financial toll of the lawsuit is staggering
The $60 million spent on legal fees could have financed two additional sequels to It Ends With Us, which cost about $25 million to make and earned $351 million at the box office. Baldoni held the rights to a prequel based on another Colleen Hoover novel, but that project is almost certainly dead in the water now.
Hoover, meanwhile, emerges from the drama unscathed. Her psychological thriller Verity, starring Anne Hathaway and Dakota Johnson, is set to hit theaters on October 2, and Amazon MGM has high hopes for it.
The legal battle also unearthed a trove of embarrassing exchanges and footage, including text messages from Deadpool’s Ryan Reynolds that allegedly showed him pressuring executives at Sony, which distributed It Ends With Us. Hollywood reporters had a field day with those revelations, adding another layer of drama to an already messy situation.
For now, both Lively and Baldoni are keeping quiet about the settlement terms, though they’re free to speak publicly about other aspects of the case. The joint statement suggests they’re both eager to put the whole ordeal behind them, but the damage to their reputations, and their wallets, is already done. The only ones laughing all the way to the bank are their lawyers, who walked away with a cool $60 million for what ultimately amounted to a legal stalemate.
(Featured images: MTV International and and iDominick)
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