American actors Blake Lively and Justin Baldoni have reached a settlement in their legal dispute over their work on the film ‘It Ends with Us’, days before trial.

In a joint statement on Monday, lawyers for Ms Lively and Wayfarer Studios, Mr Baldoni’s production company, said the film remained an important project for everyone involved, highlighting its message about domestic abuse and its aim to support survivors.

“We acknowledge the process presented challenges and recognise concerns raised by Ms Lively deserved to be heard,” the statement said, adding that all involved remain committed to maintaining professional, respectful work environments. 

The parties expressed hope that the resolution would bring closure and allow everyone to move forward productively and be respectful online.

The dispute began in 2024 when Ms Lively filed a lawsuit against Mr Baldoni, accusing him of harassment, sexual misconduct, and orchestrating a smear campaign during the production of the film. 

Mr Baldoni denied the allegations and responded with a counter-suit, including text messages exchanged between him and Ms Lively and with some of their friends.

In her filing against Wayfarer Studios, Ms Lively alleged that Mr Baldoni had harassed her on set and retaliated after she raised concerns. 

A judge later removed 10 out of the 13 claims in the suit, including those related to harassment and defamation. 

The remaining issues, breach of contract, retaliation, and aiding and abetting in retaliation, were set to proceed to trial in New York on May 18.

Mr Baldoni also filed defamation suits against Ms Lively, her husband Ryan Reynolds, and their publicist, alleging they were out to damage his reputation.

He further claimed Ms Lively attempted to take control of the project by threatening not to promote the film. 

However, a judge dismissed his claims, ruling that his legal team had not shown that Ms Lively’s threats were unlawful rather than mere hard bargaining.

‘It Ends with Us’, adapted from Colleen Hoover’s bestselling novel, tells the story of a young woman navigating a difficult, abusive relationship.