Blake Lively and Justin Baldoni announced a settlement on Monday in their lawsuit stemming from the production of the 2024 film It Ends With Us, averting a federal trial scheduled to begin on May 18.

The agreement ends a legal battle that lasted more than 17 months and drew widespread attention to behind-the-scenes tensions on the set of the romantic drama, which was adapted from Colleen Hoover's 2016 novel about domestic violence. The film, released in August 2024, exceeded box office expectations despite mixed reviews and public criticism over its portrayal of abuse.

Lively, who starred as Lily Bloom, filed a complaint with the California Civil Rights Department on December 21, 2024, alleging sexual harassment and a hostile work environment during filming in New Jersey. She accused Baldoni, the film's director and her co-star as Ryle Kincaid, of making inappropriate comments about her sex life, violating boundaries in intimate scenes, and pushing for nudity in a birth scene. Lively later filed a federal lawsuit on December 31, 2024, in Manhattan against Baldoni, his production company Wayfarer Studios, and publicists Melissa Nathan and Jennifer Abel, claiming retaliation through a "smear campaign," breach of contract, and emotional distress.

Baldoni denied the harassment allegations and countersued in January 2025 for $400 million, accusing Lively, her husband Ryan Reynolds, and her publicist of defamation, extortion, and attempting to seize creative control of the film. U.S. District Judge Lewis J. Liman dismissed Baldoni's countersuit in June 2025, ruling it was protected by litigation privileges.

In April 2026, Liman dismissed 10 of Lively's 13 claims, including all sexual harassment allegations, determining she was an independent contractor ineligible for certain protections and that California law did not apply to New Jersey filming. Three claims proceeded to trial: retaliation, aiding and abetting retaliation, and breach of contract.

The parties released a joint statement acknowledging the film's success and shared goals. "The end product, the movie ‘It Ends With Us’ is a source of pride to all of us who worked to bring it to life," it read. "We acknowledge the process presented challenges and recognize concerns raised by Ms. Lively deserved to be heard. We remain firmly committed to workplaces free of improprieties and unproductive environments. It is our sincere hope that this brings closure and allows all involved to move forward constructively and in peace, including a respectful environment online."

Terms of the settlement were not disclosed. The case featured extensive discovery, including depositions of cast members like Jenny Slate and subpoenas to figures such as Taylor Swift, which were later withdrawn. Both sides had traded public accusations through lawyers, with unsealed documents revealing text messages about PR strategies and creative disputes.

The resolution spares both actors a public trial that could have aired more details of Hollywood production practices. Lively's attorney, Sigrid McCawley, previously stated after the partial dismissal that her client had exposed a "smear machine." Baldoni's team maintained that the claims were baseless attempts to rewrite the film's narrative.