Blake Lively and Justin Baldoni, co-stars of the 2024 film ‘It Ends With Us,’ failed to reach a settlement during a court-ordered conference on February 11, 2026, setting the stage for a trial in May over allegations of sexual harassment and retaliation. Their legal dispute, which has dragged on for over a year, has exposed private communications among Hollywood elites and significantly damaged both actors’ public images, making it one of the industry’s most contentious battles.
The settlement conference took place at the U.S. District Court in New York City, where Lively and Baldoni appeared in person for the first time since the lawsuit was filed in December 2024. According to Baldoni’s attorney, Bryan Freedman, the talks were “unsuccessful in reaching any kind of resolution,” and he indicated outside the courtroom that the case is likely headed for trial. The hearing was closed to the public, with Magistrate Judge Sarah L. Cave shuttling between separate courtrooms where the legal teams were stationed, but after hours of discussion, no agreement was reached. Freedman noted that there is still a chance for settlement in the future, but preparations are underway for the scheduled May 18 trial date.
Lively’s lawsuit accuses Baldoni of sexual harassment during the filming of ‘It Ends With Us’ and retaliation after she raised concerns, while Baldoni has denied the allegations and previously filed a countersuit that was dismissed by a federal judge. The case has unsealed a trove of private documents, revealing harsh comments from Sony Pictures executives about Lively and texts involving celebrities like Taylor Swift and Ryan Reynolds, Lively’s husband. These disclosures have fueled widespread media coverage and contributed to a sharp decline in positive public sentiment for both actors, as measured by analytics firms tracking social media. For instance, Lively’s positive sentiment dropped from 81% in March 2023 to about 10% by January 2026, highlighting the reputational toll.
The financial and emotional stakes are immense, with Lively seeking compensatory and punitive damages and Baldoni facing potential career setbacks. Despite the controversy, ‘It Ends With Us’ was a box office success, grossing over $350 million worldwide, but the legal battle has overshadowed this achievement and strained professional relationships. Lively has continued to pursue new projects, including a film deal at Lionsgate, while Baldoni’s career plans remain uncertain, according to representatives. Industry insiders express puzzlement over the case’s escalation, given the film’s success and the high costs involved for both parties.
The involvement of high-profile figures adds complexity, with Taylor Swift expected to be called as a witness by Baldoni’s team and Ryan Reynolds actively supporting Lively behind the scenes. Legal analysts, such as NBC News’ Misty Marris, emphasize that a trial would be grueling and expose the actors to intense public scrutiny, potentially exacerbating the damage. The next step is a court appearance on February 12, 2026, for a separate matter, but all eyes are on the May trial date, which could proceed if no last-minute settlement is reached.
As the case moves forward, both Lively and Baldoni must weigh the ongoing personal and professional costs, including the potential for further reputational harm and the emotional strain of a public trial. The outcome may influence how sexual harassment claims are handled in Hollywood, setting precedents for accountability and privacy in the industry. For now, the focus remains on the legal showdown, with Freedman’s prediction that “this seems to be headed” to trial underscoring the deep-seated conflict between the former collaborators.
