Blake Lively and Justin Baldoni Settle Lawsuit

The lead actors from the 2024 film "It Ends With Us" reached a settlement this week that resolved the majority of their mutual legal claims, but one element of the dispute continues in court. The actress filed a motion last September seeking attorney fees and damages under a California statute enacted in 2023.

That law is designed to shield sexual harassment accusers from what it describes as weaponized defamation litigation. The motion was the sole issue left unresolved by the settlement agreement announced earlier this week. A court filing on Thursday stated that all parties have fully and finally resolved every claim in the consolidated action except for the request tied to the California law.

The filing argues the prior defamation action met all elements required to trigger the statute's penalties, which include mandatory awards of reasonable attorney fees, costs, treble damages and punitive damages where applicable. The law remains largely untested, with limited judicial precedent to guide how courts should apply its provisions.

Reports indicate the actress received no monetary payment as part of the main settlement. If the remaining claim succeeds, however, she could be entitled to damages reaching into the millions.

The legal conflict began in late 2024 during promotion of the film. Observers noted the two leads did not appear together for joint interviews, prompting public speculation of tension. In December 2024 the actress filed a complaint in California court alleging sexual harassment and a retaliatory smear campaign orchestrated by the actor's public relations team.

A major newspaper published details of the alleged campaign the same month. The actor responded by filing a defamation suit against the newspaper, which was later dismissed. He also sued the actress for defamation in January 2025. A judge dismissed that suit in June 2025.

The actress's own federal lawsuit against the actor and related parties was scheduled for trial in May 2026. Weeks before the trial date, however, the judge dismissed many of her claims, narrowing the case to allegations of breach of contract, retaliation and aiding and abetting retaliation.

Attorneys for both sides have described the settlement as a victory for their clients. The actress's legal team stated the agreement represents a resounding victory and that the remaining claim is intended to hold the other parties accountable for abusing the legal system.

The actor's attorney told reporters he was very pleased with the outcome and that his client was ecstatic, though he declined to discuss specific terms.

Purpose of the 2023 California Law The statute, known as Civil Code Section 47.1, was passed in response to the Me Too movement. It imposes severe and mandatory penalties on parties found to have filed unsuccessful retaliatory defamation actions against sexual harassment or retaliation complainants.

Proponents argue it deters attempts to silence accusers through litigation. The actress's lawyer described the fee motion as an act of advocacy. The motion, the attorney said, allows her to help pave the way for others in similar situations. The lawyer added that this is about so much more to her than the individual case.

“It allows her to help pave the way here. This is really a space where she’s been able to do some great good for survivors, and she wants to continue that work. This is about so much more to her.”

The settlement itself did not include any admission of wrongdoing by either party. Both sides have now moved to dismiss the bulk of the litigation while the fee motion proceeds on its own track.