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The nearly two-year legal war between Blake Lively and Justin Baldoni came to an abrupt end in May 2026 — and according to legal experts, the timing and terms of the settlement mean the case is closed for good.
On May 4, 2026, news broke that Lively and Baldoni reached a settlement just days before a trial was set to begin. Lively alleged that her It Ends With Us costar and director sexually harassed her, fostered a hostile work environment and orchestrated a smear campaign against her. Baldoni denied the claims and filed a countersuit, which was dismissed in June 2025.
So, why did both stars walk away from a courtroom showdown they had been preparing for since 2024 and what does the settlement actually mean for any future legal action? Here’s what to know:
Why Blake Lively and Justin Baldoni Settled Before Trial
According to Rachael Bennett, a certified family law specialist and senior attorney at Sullivan Law & Associates with no connection to the case, a trial had allegedly become “too dangerous” for either side to risk.
“When cases settle this close to trial it usually means the risk of putting the outcome in a jury’s hands becomes too dangerous for at least one, and here, probably both sides,” Bennett exclusively told Us Weekly in May 2026. “That changes the leverage dramatically once those bigger emotional claims are gone.”
Weeks before the settlement, a judge dismissed 10 of Lively’s 13 claims — including every sexual harassment and defamation claim, as well all claims against the individual defendants. Only narrowed retaliation and contract-related claims remained on the docket.
“I think both sides may have decided that continuing into a highly public trial with massive legal fees and some potential reputational risk simply just wasn’t worth a gamble anymore,” Bennett speculated.
Why Blake Lively and Justin Baldoni Cannot Refile Their Claims
Given the settlement, this case is done. Lively voluntarily dismissed her remaining claims with prejudice as part of the settlement and both sides also waived their right to appeal, meaning neither party can return to court to relitigate the same allegations down the line.
Lively’s attorneys Michael Gottlieb and Esra Hudson confirmed in a statement that Baldoni and every individual defendant “now face personal liability for abusing the legal system” but emphasized that the matter is closed.
“By agreeing to this settlement, and waiving their right to appeal, Justin Baldoni and every individual defendant now face personal liability for abusing the legal system to silence and intimidate Ms. Lively,” the lawyers told Us.
Lively still has a pending request for the defendants to cover her attorneys’ fees, as well as compensatory and punitive damages.
How Justin Baldoni’s Team Framed the Outcome
Baldoni’s lawyer Bryan Freedman called the settlement “a win and total victory for the Wayfarer parties” in a statement
“The court had already dismissed 10 of Ms. Lively’s 13 claims, including every sexual harassment claim, every defamation claim, and all claims against the individual defendants,” Freedman told Us in May 2026. “Ms. Lively voluntarily dismissed the rest. In our view, they settled because they knew they were going to lose in court.”
This story was compiled with the help of AI tools and edited by journalists.
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