(NewsNation) — Some people were shocked Blake Lively ended her lawsuit against Justin Baldoni on Monday, but not everyone.
Lively and Baldoni settled their “It Ends With Us” lawsuit on May 4, just two weeks before a trial was set to begin. A federal judge had previously thrown out 10 of the 13 claims in Lively’s lawsuit, including sexual harassment and defamation, narrowing the case down to three remaining claims: retaliation, aiding and abetting retaliation and breach of contract.
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Notably, those three claims were not against Baldoni personally; the defendants were his production company, Wayfarer, an LLC for the movie and the PR firm retained by his team. No money changed hands in the settlement, and the two sides released a joint statement acknowledging that the filmmaking process “presented challenges” and that concerns raised by Lively “deserved to be heard.”
Why did Blake Lively settle?
My sources say there were multiple reasons why Lively settled.
“(Her husband) Ryan (Reynolds) had been after her to settle for over a year,” my source said. “The lawsuit ruined her career and was damaging his. Badly.”
Indeed, Lively’s lawyers argued her professional prospects were broadly harmed by the alleged smear campaign, from her acting career to her skin care line, Blake Brown, which significantly underperformed Target’s projected $821,000-a-week in sales and went dark on social media just days after launch as negative sentiment surged online.
As Fran Weinstein, former Hollywood director and author of the new book “Tortured Soles,” told me: “At the moment, I believe that Blake is persona non grata. They don’t want to go near that fire for a while.”
NEW YORK, NEW YORK – MAY 04: Blake Lively attends the 2026 Met Gala celebrating “Costume Art” at the Metropolitan Museum of Art on May 04, 2026 in New York City. (Photo by Dimitrios Kambouris/Getty Images for The Met Museum/Vogue)
WREXHAM, WALES – AUGUST 05: Co-owner of Wrexham Football Club Ryan Reynolds and actor Hugh Jackman meet fans before the Sky Bet League Two match between Wrexham and Milton Keynes Dons at Stok Cae Ras stadium on August 05, 2023 in Wrexham, Wales. (Photo by Malcolm Couzens/Getty Images)
Justin Baldoni at the “It Ends With Us” New York Premiere at AMC Lincoln Square Theater on August 06, 2024 in New York City. (Photo by John Nacion/Variety via Getty Images)
Last year, I was the first to report that Hollywood agents and industry bigwigs were steering clear of the actress, as everyone “is loath to work with litigious actresses who cause them to go over budget.”
Reynolds didn’t escape unscathed either; as I noted last year, his image was tarnished by his portrayal as a bully in court documents, and former co-stars also came out of the woodwork to slam him.
The case cost Lively millions
The case was also very costly, with some estimating the actress likely spent tens of millions of dollars in legal fees, costs that were not recouped.
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“Two more charges were likely to be dismissed, and then there would have been only one minor charge left,” another source explained. “To litigate that would have been even more damaging to her reputation. A lot of discovery and arguing for what? Not much. She’s already lost in the court of public opinion.”
“It was, all around, a lose/lose for Blake from the very beginning,” my source said. “She started off strong with the piece in the New York Times, but then (Baldoni) fought back, hard, and released all of his information publicly on the website (thelawsuitinfo.com), and the tide almost immediately turned. The public didn’t see that he’d done anything wrong, and in fact, it looked very much like Blake bulldozed him.”
Despite Baldoni and the “Gossip Girl” actress reaching an agreement, Lively could still pursue damages and legal fees from the director and people connected to him over his countersuit against Lively, which was ultimately dismissed last year, the New York Times reported.
“The parties have fully and finally resolved all claims in the consolidated action, except one,” her lawyers wrote in a letter filed with the court on Thursday.
Blake Lively attends the Met Gala, cozies up to new friends
Lively has now decided to “move on” and shocked some when she showed up, hours after settling, at the Met Gala, in yet another princess gown by Versace.
“Blake is very, very close with Bee (Carrozzini), Anna Wintour’s daughter,” another insider said. Wintour is the global editorial head of Vogue and runs the Met Gala.
“They have dinner at each other’s houses, and through Bee, Anna has gotten to know Blake and likes her very much.”
Lively sat at Wintour’s table at the Gala, a high honor.
But perhaps an ill-advised honor as this year, the backlash against the Gala was so intense.
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Criticism centered on Amazon founder Jeff Bezos and his wife, Lauren Sanchez Bezos, having “bought” the ball for $10 million, the D-List arrivals and a sense that the once august fashion event had turned into an expensive Comic-Con-like spectacle during rough economic times.
And while Lively still has Wintour and Carrozzini, she is still side-stepped by former bestie, Taylor Swift, Gigi Hadid (who also attended Monday), and others in Hollywood.
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