Actress Blake Lively and actor-director Justin Baldoni settled their defamation lawsuit on Monday, May 4, 2026 [1].

The agreement ends a long-running legal dispute stemming from the production of the film “It Ends With Us.” By settling privately, both parties avoided a costly federal trial that was scheduled to begin on May 18 [2].

Reports indicate that no monetary compensation was awarded to either party as part of the settlement [3]. While some reports suggested potential payouts, other sources confirmed that Lively and Baldoni each earned $0 [3].

Bryan Freedman, the lawyer for Baldoni, said the actor viewed the settlement as a "logical ending" after his dismissal from the case [4]. The resolution comes two weeks before the parties were expected to appear in a U.S. federal court [2].

Despite the settlement of the primary dispute, the legal process is not entirely finished. Lively still has a pending motion for attorneys' fees, and damages resulting from Baldoni's failed defamation lawsuit [5]. This remaining motion could potentially result in financial recovery for Lively, even though the settlement itself involved no exchange of funds [5].

The conflict between the two stars became a point of significant public interest during the promotion of their collaborative film. The private agreement prevents the public disclosure of evidence and testimony that would have been presented during a trial [2].

Blake Lively and Justin Baldoni each earned no money in their lawsuit settlement.

The settlement indicates a mutual desire to minimize further brand damage and legal expenditures before a public trial. While the $0 payout suggests a stalemate, the pending motion for legal fees means the financial conclusion of the battle remains undecided, as the court must still determine who bears the cost of the litigation.