Blake Lively abruptly exited a high stakes settlement hearing with Justin Baldoni after six tense hours of closed door negotiations failed to produce a deal, dramatically escalating their explosive legal war.
The talks unfolded inside two adjoining courtrooms on the same floor of a Manhattan federal courthouse, with both sides working separately as Judge Sarah L Cave pushed for a breakthrough. By late afternoon, the mood had visibly shifted.
A stern and tight lipped Lively was seen striding out of the courtroom and heading straight for the elevator alongside her attorney, Michael Gottlieb. She did not linger.
Just five minutes later, Baldoni emerged at a far more leisurely pace. The 42 year old actor appeared relaxed, walking hand in hand with his wife Emily, 41. The pair were smiling and chatting as they left the courthouse, in stark contrast to Lively’s grim departure.
A source confirmed there was no agreement, telling Daily Mail that the case remains unresolved and both sides are expected back in court tomorrow.
Earlier that day, the two stars arrived separately at the New York City courthouse for what has become one of Hollywood’s most bitter legal clashes tied to It Ends With Us.
Lively, 38, wore a khaki double breasted suit layered over a pink button up shirt and tan vest, accessorized with a green suede purse and a five leaf clover pin she appeared to carry for luck. She entered flanked by her legal team, preparing to face her former co star for the first time since launching her lawsuit in December 2024.
Baldoni arrived in a similarly toned outfit, wearing an olive teddy coat paired with a pink scarf, accompanied by his lawyer Bryan Freedman. While Ryan Reynolds was notably absent from Lively’s side, Baldoni had Emily with him for visible support throughout the day.
The court ordered conference marked a final attempt to avoid a trial scheduled for May 18. The proceedings were closed to the public and media as the judge attempted to pressure both parties toward resolution.
At around 12.30pm, a cart stacked with chicken sandwiches and salads was wheeled into one of the courtrooms, signaling that negotiations would continue through lunch.
Shortly after, Baldoni briefly stepped out, now dressed in a white turtleneck sweater with the sleeves rolled up, his expression serious. At one point, he asked a court security officer about the whereabouts of his wife shortly before she exited the courtroom.
The legal war began when Lively filed suit accusing Baldoni of sexual harassment and retaliation during production of the film, which he directed and in which they both starred.
She is seeking $161 million in damages, citing personal harm and financial losses allegedly tied to retaliation and what she claims was a smear campaign designed to damage her reputation.
Baldoni hit back with a massive $400 million defamation lawsuit against Lively, her husband Ryan Reynolds, and the New York Times, which had reported on her allegations. That countersuit was dismissed by a judge.
Neither Lively nor Baldoni attended their previous settlement conference on January 22, which came just days after court filings exposed a series of Lively’s private text messages with high profile friends, including Taylor Swift.
Among the messages was one sent the day after Lively filed her complaint, celebrating Baldoni being dropped by his agency WME. According to court papers, the December 21, 2024 exchange began with Swift texting: "You won. You did it."
Swift continued: "You f***ing helped so many people who won't have to go through this ever again."
Addressing the backlash Lively had faced over perceived "insensitivity" toward the film’s domestic abuse theme during its promotion, Swift also wrote: "Never has a cancellation been reversed so fast."
"You guys don't understand how rare this is. To have proof and to take the perfect steps to bring that truth to light."
Lively responded emotionally: "Like. My. God."
She added: "I love you so much. I would not be ok through any of this if it weren't for you."
The messages surfaced in a lengthy filing in federal court in New York, where Lively responded to numerous claims made by Baldoni’s legal team. In that document, Baldoni’s lawyers alleged: "On April 12, 2023, Lively asked her friend, the world-famous musician Taylor Swift, for help."
They further claimed that Lively referred to Baldoni as "this doofus director of my movie", calling him "a clown" who "thinks he's a writer now".
According to the filing, "She asked Swift to endorse the revised script she was proposing even without having read it."
One message from Lively to Swift stated: "You don't have to read of course."
The document also asserted: "Swift agreed to do Lively's bidding, texting Lively: "I'll do anything for you !!""
Lively’s team has disputed the characterization that she requested Swift’s endorsement without reading the script, arguing instead that she merely expressed hope that Swift would support it.
Lively maintains that damage to her public image stems in part from what she describes as a coordinated smear campaign orchestrated by Baldoni’s team after she spoke out about alleged sexual harassment. Baldoni’s attorneys have forcefully denied those accusations.
At a prior hearing, Baldoni’s legal team attempted to have Lively’s sexual harassment claims dismissed ahead of the May trial. The judge declined to issue an immediate ruling, stating that a decision would come later.
With settlement talks now collapsed and tensions visibly raw, the stage appears set for a courtroom showdown that could lay bare even more behind the scenes secrets from one of Hollywood’s most volatile productions.