The long-running Hollywood legal saga over It Ends With Us is officially over. The case ends with Justin Baldoni paying legal fees but no additional financial concession to Blake Lively. Her legal team had bet on that outcome.
The Case
The aftermath of Lively’s eleventh-hour deal to avert a headline-splashing trial saw both sides jockeying for a legal or public relations edge. Baldoni’s lawyers played up the absence of any monetary payout to her. Lively initiated the legal saga in 2024. At that time, she accused the director and his production company Wayfarer of marshaling a plan to undermine her reputation.
Lively, the star and producer of the 2024 film adaptation of Colleen Hoover‘s novel It Ends With Us, alleged that Baldoni created a hostile work environment on set. She also claimed he retaliated against her with a smear campaign when she spoke up. She initially filed a complaint in California in December 2024. Details of the complaint were revealed to the public in a New York Times article titled “We Can Bury Anyone: Inside a Hollywood Smear Machine.”
In April, a judge threw out 10 of Lively’s 13 claims against Baldoni. The court allowed only breach of contract, retaliation, and aiding and abetting retaliation to move forward. The court ruled that Lively was working as an independent contractor. This meant she could not pursue a sexual harassment claim under federal employment law.
In January 2025, Baldoni hit back with a $400 million countersuit. The suit accused Lively, her husband Ryan Reynolds, and others of defamation and extortion. A judge dismissed Baldoni’s case in June 2025.
The Settlement
A settlement was reached before trial. According to the agreement, it bars future claims related to the dispute. It also includes a joint public statement. However, it leaves Lively’s request for attorneys’ fees and damages for the court to decide.
A New York federal judge ruled that Baldoni and his production company, Wayfarer Studios, must pay Lively’s attorneys’ fees. This ruling came after the parties settled. U.S. District Judge Lewis Liman denied Lively’s claim for punitive damages. However, he wrote that the actress was entitled to attorneys’ fees under California Civil Code Section 47.1.
The court will now assess how much of Lively’s legal fees Baldoni should pay. This will happen as her lawyers submit breakdowns of their rates and the hours worked on the case.
Both sides released a joint statement after the deal was reached. In it, they said they were “firmly committed to workplaces free of improprieties and unproductive environments.” They also expressed “sincere hope that this brings closure and allows all involved to move forward constructively and in peace.”
The Response
Days after the ruling, Baldoni’s lawyer, Bryan Freedman, said he decided to release the full settlement agreement to provide clarity. Freedman framed the outcome as a win for his client, pointing to the lack of a direct payout.
Lively’s team pushed back. Her attorneys, Michael Gottlieb and Esra Hudson, said the ruling “makes it clear that Ms. Lively brought her claims in good faith.” They stated there was no evidence she acted with malice. They also noted she is the prevailing defendant under California law. This law is meant to shield sexual harassment victims from retaliatory defamation claims.
The case played out in the public sphere. Private text messages and emails were released that roped in stars like Taylor Swift, Jameela Jamil, and Ben Affleck. For a dispute that started on a film set, it became a highly dissected legal battle. In fact, it was one of the most publicly dissected legal battles in recent Hollywood history. Whether either party walks away with a true win depends largely on who you ask.
