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The Blake Lively Justin Baldoni settlement is officially on the books. After 18 months of scorched-earth litigation over the production of It Ends With Us, the two parties filed a joint stipulation of discontinuance in Manhattan federal court on May 7, 2026 — confirming a deal reached two days earlier. No money changed hands between them, but the legal war is far from over for both stars.
Here is everything we know about the settlement, what Blake Lively retains the right to pursue, how Justin Baldoni‘s camp responded, and what happens next in one of Hollywood’s most closely watched disputes.
Blake Lively Justin Baldoni Settlement Details
The settlement was reached on May 5, 2026, just 13 days before the trial was scheduled to begin on May 18. Legal observers had expected a grueling six-to-eight-week courtroom battle that would have forced both camps to air even more private details of the It Ends With Us production in open court.
According to court filings, the deal carries these key terms:
No financial exchange. Neither Blake Lively nor Justin Baldoni paid the other a dime as part of the discontinuance. The resolution was framed around ending the active claims — not a buyout or hush-money arrangement.
Both sides waived the right to appeal. Whatever Judge Lewis Liman decides on the remaining motions will stand as final. That mutual waiver signals a level of confidence — or exhaustion — from both legal teams.
Lively retains significant post-settlement claims. This is the critical detail that separates the deal from a clean break.
What Blake Lively Retains
Despite the discontinuance, Lively’s legal team preserved the right to pursue three categories of relief that could still cost Baldoni’s side millions:
Attorney fees. Eighteen months of high-profile federal litigation with powerhouse attorneys does not come cheap. If Judge Liman awards fees, the bill could be substantial.
Treble damages. Under the applicable statute, a court can triple compensatory damages — a provision designed to punish egregious conduct.
Punitive damages under California Civil Code Section 47.1. This is the Protecting Survivors from Weaponized Defamation Lawsuits Act, a relatively new California law that shields abuse survivors from retaliatory defamation suits. Lively’s team has argued from the start that Baldoni’s counter-claims fit squarely within the statute’s crosshairs.
Judge Lewis Liman will decide these remaining motions without a jury. His ruling will be final and unappealable under the waiver terms both parties signed.
Lively’s Lawyers Declare “Resounding Victory”
Attorneys Michael Gottlieb and Esra Hudson did not mince words. In a statement released shortly after the filing, they called the outcome a “resounding victory” for their client, pointing to the fact that Baldoni’s $400 million counter-defamation lawsuit had already been dismissed and that the defendants acknowledged Lively’s concerns “deserved to be heard.”
That acknowledgment language — embedded in the stipulation — is unusual. Defendants rarely concede the legitimacy of a plaintiff’s grievances in settlement papers, and Lively’s team seized on it as a de facto vindication of her allegations.
Baldoni’s Response
Justin Baldoni’s representatives pushed back on the victory narrative almost immediately. His legal team disputed the “resounding victory” characterization, noting that no money was paid and no formal finding of wrongdoing was entered by the court.
Baldoni’s camp pointed out that a federal judge had previously dismissed 10 of Lively’s original 13 claims — a fact they say undercuts any triumphalist framing. Those dismissals, which came down earlier this year, had significantly narrowed the scope of what would have gone to trial and, according to sources close to the defense, were a major factor in intensifying settlement talks.
Timeline of the Blake Lively Justin Baldoni Dispute
Summer 2023: It Ends With Us wraps production. Reports of on-set tension between Lively and Baldoni begin circulating.
Late 2024: Lively files a federal lawsuit alleging sexual harassment and retaliation during production. Baldoni files a $400 million counter-defamation suit.
Early 2026: A federal judge dismisses Baldoni’s counter-suit. Separately, 10 of Lively’s 13 original claims are dismissed. Three claims survive for trial.
May 5, 2026: Settlement reached out of court.
May 7, 2026: Joint stipulation of discontinuance filed in Manhattan federal court.
May 18, 2026 (cancelled): Originally scheduled trial date.
What Happens Next
The case now rests with Judge Liman. He will rule on Lively’s motions for attorney fees, treble damages, and punitive damages under Section 47.1. No timeline for that decision has been announced, but legal experts expect a ruling within 60 to 90 days given the waiver of appellate rights.
Meanwhile, both stars appear to be moving on publicly. Lively attended the Met Gala just hours after the settlement was reached on May 5, posting a selfie with husband Ryan Reynolds that signaled business-as-usual energy. Baldoni has not made a public appearance since the filing.
For Hollywood, the case set new precedents around California’s anti-SLAPP protections for abuse survivors and will likely be cited in future entertainment-industry disputes for years to come.
Did Blake Lively receive money in the settlement with Justin Baldoni?
No. The Blake Lively Justin Baldoni settlement explicitly involved no financial exchange between the parties. However, Lively retains the right to pursue attorney fees, treble damages, and punitive damages through a separate judicial ruling.
What was the Blake Lively Justin Baldoni lawsuit about?
Lively alleged sexual harassment and retaliation during the production of It Ends With Us. Baldoni denied the claims and filed a $400 million counter-defamation suit, which was later dismissed by a federal judge.
Can either party appeal the settlement?
No. Both Blake Lively and Justin Baldoni waived their right to appeal as part of the settlement terms. Judge Lewis Liman’s decision on the remaining damages motions will be final.
What is California Civil Code Section 47.1?
Section 47.1 is the Protecting Survivors from Weaponized Defamation Lawsuits Act. It allows survivors of abuse to seek punitive damages when they face retaliatory defamation suits designed to silence them.
When was the Blake Lively Baldoni trial supposed to start?
The trial was scheduled to begin on May 18, 2026, and was expected to last six to eight weeks. The settlement reached on May 5 eliminated the need for a trial.