Blake Lively And Justin Baldoni Just Settled Their EXPLOSIVE Legal Battle — And The Drama Is STILL Not Over 😱

Stop everything, because the Blake Lively and Justin Baldoni legal saga just took another WILD turn — and honestly, we need a minute to process.

After nearly two years of back-and-forth lawsuits, sexual harassment allegations, and enough drama to fill a thousand Gossip Girl episodes, E! Online reports that the former It Ends With Us costars have finally reached a settlement in their explosive legal battle.

But if you thought this meant the end of the chaos? Think again. 👀

The Tea ☕

• Blake Lively and Justin Baldoni settled their legal battle in May 2026 — just TWO WEEKS before they were set to go to trial
• The original lawsuit started in December 2024 when Blake accused Justin and his team of launching a "smear campaign" against her after she raised sexual harassment concerns on set
• Blake is now seeking $8 MILLION from Baldoni for attorney fees and litigation costs — and the courts haven't decided yet
• Both parties released a joint statement saying they want to "move forward constructively and in peace"

How We Got Here (And It's MESSY)

Okay, so let's rewind to August 2024, when It Ends With Us premiered in theaters. The movie — based on Colleen Hoover's mega-popular book — starred Blake and Justin, with Justin also directing.

Fans immediately sensed something was OFF during the press tour. The vibes between Blake and Justin? Icy at best. But nobody could have predicted what came next.

In December 2024, according to E! Online, Blake filed a California Civil Rights Department complaint against Justin, his production company Wayfarer Studios, and several associates. She accused them of sexual harassment on set AND claimed they launched a coordinated smear campaign to destroy her reputation after she spoke up about the alleged misconduct.

The allegations were SERIOUS — and Blake's complaint included text messages, emails, and receipts that The New York Times published for the world to see.

Justin Fired Back HARD

Justin and his team? They denied EVERYTHING.

His attorney Bryan Freedman called Blake's allegations "completely false, outrageous and intentionally salacious" and said they were a "desperate attempt" to fix her damaged reputation (ouch).

Then in January 2025, Justin, Wayfarer, and others filed their OWN lawsuit against Blake, her husband Ryan Reynolds, and her publicist. They accused Blake of defamation and extortion, claiming SHE seized control of the movie and tried to "tar and feather" them in the press.

The legal ping-pong was RELENTLESS.

The Courts Weighed In

Here's where it gets even messier. A judge dismissed Justin's countersuit in June 2025, saying he didn't prove his defamation and extortion claims.

But then in April 2026, a judge dismissed 10 of Blake's 13 claims — including her sexual harassment accusation. The reason? She was classified as an independent contractor, not an employee, so certain legal protections didn't apply. (Yes, really.)

Blake still had three claims standing though, including retaliation. And she was ready to take them to trial.

And Then... Settlement

Just two weeks before their May 2026 trial date, both sides announced they'd reached a settlement.

"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," their lawyers said in a joint statement, according to E! Online. "It is our sincere hope that this brings closure and allows all involved to move forward constructively and in peace."

Sounds nice and diplomatic, right? Except the drama kept going.

Blake Wants $8 Million — And Justin's Team Says ABSOLUTELY NOT

In June 2026, Blake's lawyers filed a motion seeking about $8 million from Justin and Wayfarer for attorney fees and litigation costs.

A judge granted Blake's request for attorney fees (but not damages), ruling that Justin and Wayfarer provided no evidence she acted with malice by bringing her allegations forward.

Justin's attorney Bryan Freedman? He told E! News that Blake "received nothing" in the settlement and continued to deny everything: "There was no sexual harassment. There was no retaliation. There was no smear campaign."

Meanwhile, Justin and Wayfarer filed an opposition in July arguing the $8 million "should be denied in its entirety" or "at minimum" be reduced "substantially."

The courts haven't decided yet how much Blake will actually get.

They're Both Trying To Move On (Kind Of)

Blake has been spotted at major events like the 2026 Met Gala — which she attended literally HOURS after the settlement was announced — and the World Cup final with Ryan. (Though notably, they skipped Taylor Swift and Travis Kelce's wedding in July. 👀)

Justin and his wife Emily Baldoni posted a video in July explaining why they'd been quiet for "the better part of the last two years."

But let's be real: with millions of dollars still on the table and lawyers still battling it out, this story is FAR from over.

The question is: whose side are YOU on? Team Blake or Team Justin? Sound off in the comments below. 👇

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Sources:

• E! Online: Blake Lively, Justin Baldoni: A Timeline of Their Settled Legal Battle