Lively brought in a new law firm, Susman Godfrey, to defend her before the “It Ends With Us” co-stars settled their lengthy legal war on Monday, according to TMZ.
Both Lively and Baldoni’s legal teams made “millions” in the case, the outlet reported.
Lively’s lawsuit against Baldoni was settled two weeks before the case was scheduled to go to trial on May 18.
Both parties added that they “remain firmly committed to workplaces free of improprieties and unproductive environments” and it is their “sincere hope that this brings closure and allows all involved to move forward constructively and in peace, including a respectful environment online.”
Lively filed a sexual harassment lawsuit against Baldoni, who also directed their film, in December 2024.
Baldoni denied Lively’s claims and, the next month, filed a $400 million countersuit against the actress, her husband Ryan Reynolds and their publicist, Leslie Sloane, alleging defamation, extortion and more.
However, Baldoni’s suit was dismissed in June 2025.
Last month, Judge Lewis Liman threw out 10 of Lively’s 13 claims against Baldoni, including sexual harassment, defamation and conspiracy.
He ruled that only three of her claims could proceed — breach of contract, retaliation and aiding and abetting in retaliation — before the two actors decided to settle.
A source told us that Lively and Baldoni were negotiating for a few weeks and were encouraged to make a settlement.
“They finally came to an agreement today. It was a last-minute deal,” the insider shared with us just moments after the settlement was reached.
The source added that the judge wanted to avoid the case getting to trial s it was going to be a long, drawn-out case, so they were encouraged to reach an agreement.”
This story is developing…
