The Moment
Blake Lively and Justin Baldoni walked away from fresh settlement talks in New York on Monday, keeping their legal fight very much alive. The private conferences, overseen by a magistrate judge, ended without a deal.
This comes days after the presiding judge dismissed 10 of Lively’s 13 claims, including all sexual harassment allegations, leaving three issues for trial: breach of contract, retaliation, and aiding and abetting retaliation. Baldoni denies the remaining claims. A jury trial is currently set for March 18.
Both sides signaled they’re open to more talks, but for now, the case marches toward a courtroom showdown.
The Take
Here’s the real headline beneath the headlines: this isn’t a harassment case anymore. The court pared it down to what Hollywood arguably values (and fears) most, reputation and power. If harassment was the spark, the legal fire that’s left is about what happened after Lively spoke up: did a retaliation or “smear” campaign unfold, and did anyone break contracts in the process?
There’s also a very modern Hollywood wrinkle. The judge indicated Lively’s high level of control on set muddied her status as an “employee,” which helped knock out certain claims. When stars also produce, the usual workplace lanes blur. Think of this as two top-billed leads locked in a publicity tug-of-war, only now the rope is discovery, and the referee keeps minutes.
Refusing to settle tells me both sides believe they can survive not just a jury, but the court of public opinion. Still, trial risk cuts both ways. Under oath, the receipts, emails, texts, and PR directives could land louder than any red-carpet statement.
Receipts
Confirmed:
- A federal judge dismissed 10 of 13 claims last week, including all sexual harassment counts, leaving breach of contract, retaliation, and aiding/abetting retaliation for trial, per the court’s order.
- Settlement conferences were held on Monday before a magistrate judge; no agreement was reached, according to court docket notes.
- The trial is scheduled for March 18, per the court calendar.
- Baldoni’s legal team said they were pleased with the partial dismissal; Lively’s side says the case now centers on alleged retaliation. Both statements were issued following the court’s ruling.
Unverified/Reported:
- The existence and specifics of any alleged “smear” campaign by PR professionals remain allegations that a jury may evaluate.
- Any new settlement terms or offers discussed on Monday were not made public.
Backstory (for Casual Readers)
Blake Lively (of “Gossip Girl” and “A Simple Favor”) and Justin Baldoni (actor-director known for “Jane the Virgin” and “It Ends With Us”) co-starred in the film adaptation of the Colleen Hoover novel. Lively later filed suit alleging sexual harassment and retaliation tied to the production. The judge has now dismissed the harassment claims, citing, among other things, contract and employment-status issues, but allowed retaliation-related claims to proceed. Baldoni denies wrongdoing.
What’s Next
Unless a deal surfaces, expect pretrial motions, witness lists, and filings to set the tone. Watch for any limits the court places on PR evidence and how each side frames “retaliation” for a jury. Another round of settlement talks isn’t off the table, but the calendar says trial in mid-March, which means discovery could drip headlines well before opening statements.
Do you think this should go before a jury, or is a quiet settlement still the wiser path here?
Sources:
- U.S. District Court (S.D.N.Y.) memorandum and order by Judge Lewis J. Liman (Apr. 3, 2026).
- S.D.N.Y. docket minute entries reflecting settlement conferences before Magistrate Judge Sarah L. Cave (Apr. 6, 2026).
- Post-ruling statements from Alexandra Shapiro and Jonathan Bach for Baldoni (Apr. 3, 2026).
- Statement from Sigrid McCawley for Lively (Apr. 3, 2026).
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