Blake Lively, Justin Baldoni Settle Harassment Lawsuit Before Trial

Lively and Justin Baldoni, co-stars in the film "It Ends With Us," have settled a harassment lawsuit, ending their legal battle just two weeks before a federal trial was set to begin. The settlement was announced on Monday, the same day as the 2026 Met Gala.

Multiple sources confirmed the resolution, with a joint statement from their legal teams noting that concerns raised by Lively deserved to be heard. The dispute stemmed from Lively's accusations against Baldoni of repeated sexual harassment on set and orchestrating a digital smear campaign in retaliation.

Baldoni denied the allegations and filed a $400 million countersuit, which a federal judge dismissed in 2025. The judge also reprimanded Baldoni's legal team for making claims deemed legally frivolous and factually baseless.

The legal actions began after the 2024 release of "It Ends With Us," where Lively alleged Baldoni's behavior created an unsafe environment. Court filings included text messages from colleagues, such as actor Jenny Slate calling Baldoni a "false ally" and refusing to do press with him, and producer Alex Saks pushing to replace Baldoni as director during filming.

“It’s like a horror film no one knows is taking place." — Taylor Swift, in a 2024 text to Blake Lively (Business Insider). Baldoni's production company was involved in the suit, and the settlement halts any further proceedings. Sources reported no details on financial terms or other conditions of the agreement.”

Hours after the settlement news, Lively attended the 2026 Met Gala as a guest of Versace, marking her return to the event after a four-year absence. She wore an archival Atelier Versace gown from spring 2006, featuring a 13-foot train, and told reporters it represented standing in her current self with strength and confidence.

The appearance coincided with the legal resolution, drawing attention to her public re-emergence.

“Every year I am a different version of myself than the last, so to be able to stand in the version of myself that I am today — and all the experiences I’ve had — in strength and confidence is important to me." — Blake Lively, at the 2026 Met Gala (Business Insider). Evan Nierman, CEO of PR firm Red Banyan, described the timing as a strategic move for image rehabilitation, noting Lively's history of commanding the Met Gala red carpet. The event, held on Monday, also featured other celebrities, but Lively's surprise presence stood out amid the day's developments.”

The feud generated widespread media coverage since the lawsuits were filed, involving statements from Hollywood figures and public commentary. Lively had faced initial online criticism for allegedly taking creative control of the film, but her claims shifted focus to workplace conduct issues.

With the settlement, both parties expressed a desire to move forward. Colleagues' accounts in court documents supported some of Lively's complaints, including refusals to promote the film alongside Baldoni. The resolution avoids a trial that could have revealed more details through jury selection and testimony.

The 2026 Met Gala, themed around fashion history, saw Lively's gown choice as a nod to endurance, according to her statements. No further legal actions are expected, closing a chapter that spanned over a year.