Is that a white flag waving in Blake Lively and Justin Baldoni‘s camp?

The two actors, who starred in the “It Ends With Us” movie and have spent nearly two years in court slugging it out over allegations of harassment, have finally decided to bury the hatchet for the greater good.

Blake Lively and Justin Baldoni’s public spat escalated into a full-blown legal battle in December 2024, where she made claims of sexual harassment, hostile work environment, and a retaliatory smear campaign in the federal lawsuit.

Blake Lively And Justin Baldoni Reportedly Reach Shocking Settlement

The actors have now settled their legal battle today, May 4, 2026, just two weeks before they were scheduled to head to trial on May 18. Prior to this update, a judge had reportedly dropped 10 out of Lively’s 13 claims in court last month.

In a joint statement about the decision to find a common ground, Lively and Baldoni admitted that working on their hit movie remained a source of joy and pride to them both.

The actors continued that the main aim of using the movie as an outlet of awareness to help domestic violence survivors feel seen and heard is still a priority.

“We acknowledge the process presented challenges and recognize concerns raised by Ms. Lively deserved to be heard,” the statement read. Lively and the director affirmed in their statement that their commitment to promoting a work environment free of improprieties and productivity remains firm.

The duo concluded to Page Six that it is their sincere hope that the settlement brings much-needed closure, which allows them to move forward in peace and continue being respectful online.

The ‘It Ends With Us’ Director Distanced Himself From Any Role In The Actress’s Financial Woes

Last month, The Blast stated that Baldoni’s legal team came hard at dispelling claims from Lively that he played a part in her alleged financial problems. According to the director’s lawyers, Lively’s money problems come from her pre-existing reputation and business track record.

The lawyers referred to her past criticism of Kate Middleton as proof that the damage to her reputation did not start when their legal trouble about “It Ends With Us” began.

Baldoni’s team continued that Lively’s actions during that March 2024 photo-editing scandal also gave the public backlash against her more backing way before the film was released.

Lively had posted a comically edited photo on Instagram two years ago, which made fun of Middleton’s Photoshop fail shortly before the Princess of Wales revealed her cancer diagnosis.

The actress eventually apologized for the now-deleted images, admitting that she was mortified for making such a post as part of a Photoshop fails trend.

Baldoni’s lawyers accused her of exaggerating how much she has lost due to the case, arguing that Lively earned about $21 million from four projects over eight years before “It Ends With Us” release.

Blake Lively’s Past Entrepreneurial Fail Spotlighted In Justin Baldoni’s Response

The director’s legal team referred to Lively’s beverage brand, Betty Buzz, spotlighting its inability to survive in the market as evidence that her financial woes started a long time ago.

According to the court filings, concerns about Betty Buzz’s long-term profitability existed alongside discussions about the challenges in ensuring and sustaining the brand’s growth in the U.S. market.

The lawyers continued that the actress’s unlikable personality contributed to the brand’s failure. They continued that during the press tour for “It Ends With Us” in August 2024, Lively was dragged for using the movie’s platform to promote Betty Buzz alongside her alcoholic line, Betty Booze.

Baldoni’s legal filings pointed to the promotional choices, especially the decision to name cocktails after characters in a film centered on domestic violence, as “tone-deaf.” This move from Lively ultimately made her lose audience, hence losing millions of dollars in return.

The Mother-Of-Four Is Still Associating With Her Drink Brand Betty Buzz

Lively has reportedly yet to distance herself from the brand, despite reports that Betty Buzz has been shut down. As stated by The Blast, she debuted that mixer line in 2021, marketing it as a low-calorie option that contained clean ingredients.

Lively was heavily involved in promo for the brand since it launched, infusing it in ad campaigns and interviews down to the press run for “It Ends With Us.” The “Gossip Girl” star’s Instagram bio still lists Betty Buzz alongside her other ventures, Betty Booze and Blake Brown Beauty. 

Meanwhile, the brand’s social media pages are still active, but purchase links no longer function, which suggests that operations may have quietly shut down.

Lively had claimed in court that the smear campaign by Baldoni’s team had cost her nearly $300 million in lost profits and opportunities, including reputational damages between $36.5 million and $40.5 million.

The actress stressed that her businesses, including Betty Booze and Blake Brown, also lost between $39.6 million and $143.5 million.

Blake Lively’s Legal Drama Reportedly Affected Her Met Gala Attendance

Two years before heading to court, Lively turned heads at the 2022 Met Gala in a metallic two-toned dress, which broke the internet.

The actress co-chaired the event alongside her husband, actor Ryan Reynolds, for the 2022 edition, after which she had remained unseen for over three years in a row.

Lively’s predicted absence at the 2026 edition is now being blamed on the state of things between her and Baldoni, which blew up into an uncontrolled legal case. 

Fans also stepped into the chat, claiming that it was unfair to have her be silenced from speaking her truth and then made to disappear from serving iconic looks on the red carpet due to the controversy. 

Other commenters stated that Lively would be unhappy about the snub from Met Gala organizers because it may have served as the best platform to help her revamp her broken public image.

Before the latest agreement between Lively and Baldoni, their case was slated to commence on May 18. The duo was expected to testify alongside other witnesses who remain anonymous,

Welcome to the light at the end of the tunnel, Blake Lively and Justin Baldoni!