LOS ANGELES — Blake Lively and Justin Baldoni have reached a confidential settlement, bringing an abrupt end to the high-profile legal battle that erupted during the production and promotion of the film "It Ends With Us," sources close to both parties confirmed Thursday. The resolution, coming just months after Lively filed a bombshell lawsuit accusing Baldoni of sexual harassment and a smear campaign, avoids a potentially explosive trial and allows both stars to move forward amid intense public scrutiny.

The settlement was finalized in recent days, according to multiple people familiar with the negotiations. Neither side has released details of the agreement, including any financial terms or admissions of wrongdoing. Both Lively and Baldoni issued joint statements expressing a desire to put the matter behind them and focus on their families and future projects.

In a carefully worded joint statement, the two said: "We have decided to resolve our differences amicably and privately. We wish each other the best and ask for privacy as we move forward with our lives and careers." The statement was released through their respective representatives and marked the first public communication between the parties since the lawsuit was filed in December 2025.

Lively's original complaint accused Baldoni, who directed and co-starred in the film adaptation of Colleen Hoover's bestselling novel, of creating a hostile work environment, including allegations of sexual harassment, fat-shaming and orchestrating a public relations campaign to damage her reputation. Baldoni denied all allegations, calling them "categorically false" and filing a countersuit accusing Lively and her husband Ryan........

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