The drawn-out legal dispute between Blake Lively and Justin Baldoni may not be over, with the actress reportedly planning to seek legal fees from her former co-star over a related lawsuit.
The It Ends With Us co-stars settled their ongoing legal dispute on Monday, two weeks ahead of a planned trial set to hear Lively’s claims that Baldoni conspired with publicists to pre-emptively destroy her reputation after she had accused him of sexually harassing her on the movie set.
But now a lawyer for the Gossip Girl alum has said there is one more hurdle to overcome: legal fees.
“The parties have fully and finally resolved all claims in the consolidated action, except one,” Lively’s lead attorney Michael Gottlieb wrote in a letter filed in a Manhattan court yesterday, per NBC News.
An exemption in a notice of settlement, which was filed by both parties, states that Lively is seeking legal fees from Baldoni and his partners over a separate legal matter.
However, Baldoni’s attorneys argued in a legal filing that those penalties, if granted, could be “draconian”.
Lively and Baldoni have been locked in a legal back and forth since December 2024, when the actress accused him of sexually harassing her while they were co-starring in the hit film It Ends with Us, which he also directed.
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She also alleged Baldoni and others, including his production company, Wayfarer Studios, retaliated by orchestrating a smear campaign against her.
Baldoni has vehemently denied Lively’s claims.
Baldoni later launched his own multimillion-dollar lawsuit against the star and her husband Ryan Reynolds for defamation but this was later dismissed by a judge following a request from Lively.
He also launched a defamation lawsuit against The New York Times which was dismissed.
Lively withdrew claims of emotional distress from her lawsuit in June last year.
The rest of the matter was due to go to court in March 2026 but was delayed.
Then in April, a judge dismissed 10 of Lively’s 13 claims, including the sexual harassment allegations, before the warring parties settled the matter on May 4.
They released a joint statement in which they said, “Raising awareness, and making a meaningful impact in the lives of domestic violence survivors – and all survivors – is a goal that we stand behind.
“It is our sincere hope that this brings closure and allows all involved to move forward constructively and in peace, including a respectful environment online.”
Now it is believed Lively is seeking legal fees and damages from Baldoni over his countersuit.
Whether they can settle the matter remains to be seen, given they cannot agree on who ‘won’ their now settled legal fight, with both sides claiming victory yesterday.
Lively’s attorneys described the settlement as “a resounding victory” for their client, in a statement provided to E! News.
“From day one, Blake Lively’s mission was clear: expose and hold accountable those who weaponise smear campaigns and retaliatory lawsuits to intimidate and silence survivors. That mission continues.
“By agreeing to this settlement, and waiving their right to appeal, Justin Baldoni and every individual defendant now face personal liability for abusing the legal system to silence and intimidate Ms Lively.
“And by admitting that Ms Lively’s concerns ‘deserved to be heard’, the defendants have ended once and for all the fiction that Ms Lively ‘fabricated’ claims of sexual harassment and retaliation.”
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However, when asked about the statement, Baldoni’s attorney Bryan Freedman had a different view.
“Let’s be clear, this is a win and total victory for the Wayfarer parties. The court had already dismissed 10 of Ms Lively’s 13 claims, including every sexual harassment claim, every defamation claim, and all claims against the individual defendants.
“Ms Lively voluntarily dismissed the rest.
“In our view, they settled because they knew they were going to lose in court. All that remains is a pending request for fees based on a very narrow issue that has been with the court since September 2025.”
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