Blake Lively and Justin Baldoni Refuse Settlement, Legal Battle Takes a Fierce Turn

Blake Lively and Justin Baldoni’s legal battle continues to heat up as neither party is willing to settle the case. It has been nearly two months since Lively filed a lawsuit in December 2024, accusing her It Ends With Us director and co-star Justin Baldoni of sexual harassment. Since then, both have been locked in a bitter legal fight, with accusations and counter-lawsuits making headlines.

As per PEOPLE, their attorneys submitted a joint letter to the Manhattan judge on January 13, stating that mediation or settlement talks are not an option right now. This response came after the court’s directive to begin dispute resolution by late January. Their lawyers argued that negotiating a settlement at this stage is “inappropriate and premature,” indicating that the case is headed for trial.

On February 12, Lively’s legal team, led by Mike Gottlieb and Esra Hudson, issued a statement insisting that obtaining Baldoni’s phone records would expose a “deliberate campaign” to ruin her reputation and damage her family. Interestingly, this joint letter marks the first time both parties have agreed on anything—an agreement to keep disagreeing.

Blake Lively-Justin Baldoni Legal Dispute

The controversy began when Lively filed a lawsuit against Baldoni in December 2024, accusing him of misconduct and sexual harassment. She further alleged that Baldoni and his team orchestrated a smear campaign to destroy her career. In response, Baldoni filed a massive $400 million countersuit, naming Lively’s husband, actor Ryan Reynolds, along with her legal team. He accused them of extortion and defamation.

Adding more drama, Baldoni’s legal team has announced plans to launch a website revealing messages, emails, and video evidence to counter Lively’s claims. In response, Lively’s team has requested a gag order to prevent him from making the information public.

A trial date is set for March 9, 2026. Meanwhile, their film It Ends With Us was released in August 2024 and performed well at the box office.