Blake Lively and Justin Baldoni have reached a settlement in their high-profile legal battle over the 2023 film ‘It Ends With Us,’ ending a year-long legal saga. The terms of the agreement. Made public on June 15, state that both parties have agreed to “end all differences and disputes” and “irrevocably waive any and all appellate rights associated” with their prior legal actions. A joint statement was also released, affirming the film’s “source of pride” and its goal to “raise awareness and make a meaningful impact in the lives of domestic violence survivors.”

Legal Background and Settlement Terms

The dispute began in December 2024 when Lively sued Baldoni and his production company, Wayfarer Studios, for sexual harassment and retaliation. She alleged that Baldoni had sexually harassed her on set and orchestrated a smear campaign against her. In January 2025, Baldoni and Wayfarer filed a $400 million countersuit against Lively, her husband Ryan Reynolds, and The New York Times, accusing them of civil extortion, defamation, and false light.

The countersuit was dismissed in November 2025, and by May 2025, both parties had settled the remaining claims. Judge Lewis Liman ruled that Baldoni must cover Lively’s legal fees but denied her request for damages. The settlement left Lively’s motion for attorneys’ fees and damages to be decided in later proceedings under California’s Weaponized Defamation Lawsuits Act, which aims to protect victims from retaliatory lawsuits.

Settlement Motivations and Public Statements

Baldoni’s attorney, Bryan Freedman, stated that the settlement was released to “allow people finality” and “to allow them to have peace.” He emphasized the importance of moving forward, noting that the settlement should “allow Justin to have time with his family, unmitigated time where his mind is elsewhere” and “allow Ms. Lively the dignity to move on with her life.” Freedman also expressed hope that the public would “get tired of it” and “learn from it all,” suggesting the legal battle had run its course.

According to court documents, the settlement bars future claims related to the dispute and includes a joint public statement. The agreement was made public after Liman dismissed all but three of Lively’s 16 causes of action in April 2025. The settlement was finalized on May 4, 2025.

Controversies and Public Reaction

The case gained significant public attention, with rumors of a legal dispute circulating online as Lively and Baldoni appeared to avoid each other during promotional events for ‘It Ends With Us.’ Lively was criticized for the film’s handling of domestic violence, with some claiming it lacked the necessary sensitivity. The film, based on Colleen Hoover’s bestseller, features Lively as Lily Bloom and Baldoni as Ryle Kincaid, her abusive partner.

Baldoni’s team argued that the negative public reaction was part of a “carefully orchestrated” campaign by Lively’s public relations team. Meanwhile, Lively’s legal team maintained that the defamation claims were a retaliatory move to “destroy” her reputation and career. In January 2023, the film’s cast was announced, with Lively and Baldoni cast as co-leads. Hoover had expressed enthusiasm for the casting, calling Lively her “dream Lily” and Baldoni her ideal Ryle.

Despite the settlement, questions remain about how the legal battle will impact future collaborations and public perception of both stars. The case has highlighted tensions in the entertainment industry regarding workplace conduct and the legal protections afforded to victims of harassment and retaliation.