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Blake Lively–Justin Baldoni settlement: No money exchanged, legal battle not entirely over: Report

Blake Lively and Justin Baldoni settle their dispute without financial compensation, but as per Variety, legal proceedings in the case are still ongoing.

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FP Entertainment Desk|May 06, 2026, 17:23:45 IST

Blake Lively and Justin Baldoni have reached a settlement in their long-running dispute, but as per Variety, the resolution comes without any financial compensation, and the legal saga isn’t fully wrapped up yet.

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No payout, but not a full stop

According to Variety, no money changed hands as part of the settlement. However, Lively still has a pending motion seeking attorneys’ fees and damages tied to Baldoni’s previously dismissed defamation lawsuit.

A source quoted by the publication cautioned against premature conclusions, stating, “Anyone purporting to confirm the terms of the confidential settlement at this point is misleading you,” adding that more details are expected to surface in court filings soon.

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Claims dropped ahead of trial

The settlement comes after Lively agreed to drop her remaining claims against Wayfarer Studios, co-founded by Baldoni, and its publicists. This move avoids a trial that was scheduled to begin on May 18.

Lively had earlier alleged that Wayfarer retaliated against her after she accused Baldoni of sexual harassment during the making of It Ends With Us. Notably, most of her claims, including those related to sexual harassment, had already been dismissed last month.

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Baldoni’s defamation suit and what followed

While the settlement resolves part of the dispute, Baldoni’s $400 million defamation lawsuit, filed against Lively, Ryan Reynolds, and their publicists, had already been thrown out last year.

The suit alleged that false harassment claims were used to damage Baldoni’s reputation and take control of the film’s narrative. However, the court dismissed it on the grounds that Lively’s statements were made within legal filings and were therefore protected.

Legal complexities still in play

Lively had also sought attorneys’ fees and damages under a 2023 California law designed to protect individuals from retaliatory defamation lawsuits. While the judge denied the request initially, she was allowed to refile the motion, which remains pending.

Baldoni’s legal team has opposed the motion, arguing it seeks excessive relief and should not apply to actions that occurred outside California.

A costly trial avoided

By settling now, both parties have sidestepped what could have been a lengthy and expensive federal trial. Reports suggest Baldoni’s side is relieved with the outcome.

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First Published:May 06, 2026, 17:23:45 IST
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