While no financial compensation was exchanged in the recent settlement between Blake Lively and Justin Baldoni, the legal saga surrounding the “It Ends With Us” co-stars remains partially unresolved. Lively reached an agreement on Monday to drop her three remaining claims against Wayfarer Studios and its publicity team, effectively canceling a trial that had been scheduled to commence on May 18.
This legal maneuver, according to Variety, follows Lively’s previous allegations that the studio—co-founded by Baldoni—illegally retaliated against her after she accused him of sexual harassment during the film’s production.
The settlement allowed both parties to avoid the significant expenses associated with a federal trial, and multiple outlets have confirmed that Lively received zero dollars as part of the resolution. Sources close to the matter indicate that Baldoni’s team is highly satisfied with the outcome, though they cautioned that any public confirmation of specific “confidential” terms may be misleading until more information appears on the court’s docket in the coming days.
Despite this truce regarding the retaliation claims, the fallout from Baldoni’s failed $400 million defamation suit continues to loom over the proceedings.
Read more: Inside the relationship timeline of Megan Thee Stallion and Klay Thompson (with videos)
That defamation complaint, filed by Baldoni in January 2025, alleged that Lively and her husband, Ryan Reynolds, had weaponized false harassment claims to hijack the film’s narrative and damage Baldoni’s professional standing.
Although Judge Lewis Liman dismissed that suit last June on the grounds that Lively’s allegations were legally immune, a pending motion regarding attorneys’ fees and damages remains active. Lively’s legal team is currently seeking punitive damages and fees under a 2023 California law designed to shield survivors of sexual abuse from retaliatory litigation.
The application of this specific law, known as the Protecting Survivors from Weaponized Defamation Lawsuits Act, has become a central point of contention. Baldoni’s attorneys have characterized the sought-after relief as “draconian” and argue that the California-based statute should not apply to events that took place in New York and New Jersey.
Conversely, advocacy groups like Equal Rights Advocates have filed briefs supporting Lively, suggesting that the final ruling on these fees will significantly impact how future victims of harassment decide to come forward. For now, while the threat of a full trial has vanished, the financial and legal accountability for the initial defamation filing remains in the hands of the court.
