Blake Lively and Justin Baldoni made the shocking decision to settle their lengthy court battle Monday in what we’re told was a “last-minute deal.”
A source told Page Six that the “It Ends With Us” co-stars had been negotiating for a few weeks and were encouraged to make a settlement.
“They finally came to an agreement today. It was a last-minute deal,” the insider shared with us just moments after the settlement was reached. “The magistrate and the judge wanted to avoid this going to trial as it was going to be a long, drawn-out case, so they were encouraged to reach an agreement.”
According to New York litigation attorney Richard C. Schoenstein, the case was always likely going to settle, because of the jury being unpredictable.
“It’s not clear that a jury would like either of the litigants. It was never clear to me what either party could get out of the case,” he told Page Six Monday. “I think [Lively] was going to have trouble proving she was retaliated against, and then I think she was going to have trouble proving damages.”
The attorney also noted that the case had already gone to mediation in February, though the talks were unsuccessful.
“Like many cases, I suspect they’ve been having some sort of settlement dialog for a long time,” he explained, “and this court settlement process since at least February, [leading] to the settlement now.”
Schoenstein added that it also wasn’t in the best interest of both parties to go to trial, given that “there are facts that are embarrassing to both sides.”
Ethan Krasnoo, partner at Reavis Page Jump LLP, shared a similar sentiment with Page Six Monday, noting that Lively, 38, and Baldoni, 42, “faced the prospect of disclosure of sensitive personal and professional information at trial.”
“Settlement allowed the parties to jointly shape a resolution and avoid those risks,” he said.
Lively and Baldoni’s settlement comes two weeks before their trial was scheduled to go to trial.
Despite all the drama, the two said in a joint statement obtained by Page Six that they still had pride for their hit film, “It Ends With Us.”
“Raising awareness, and making a meaningful impact in the lives of domestic violence survivors — and all survivors — is a goal that we stand behind,” they continued. “We acknowledge the process presented challenges and recognize concerns raised by Ms. Lively deserved to be heard.”
Both parties added that they “remain firmly committed to workplaces free of improprieties and unproductive environments” and it is their “sincere hope that this brings closure and allows all involved to move forward constructively and in peace, including a respectful environment online.”
Last month, Lively’s case was dealt a devastating blow when Judge Lewis Liman threw out 10 of her 13 claims against Baldoni, including sexual harassment, defamation and conspiracy.
He ruled that only three of her claims could proceed — breach of contract, retaliation and aiding and abetting in retaliation — in a trial that was set for May 18 before the two decided to settle.
In a lengthy Instagram Story following the ruling, Lively shared her feelings.
“The last thing I wanted in my life was a lawsuit, but I brought this case because of the pervasive RETALIATION I faced, and continued to, for privately and professionally asking for a safe working environment for myself and others,” she wrote in part.
Lively added that she “will never stop doing” her part in the fight to “expose the systems and people who seek to harm, shame, silence and retaliate against victims.”
“I know it’s a privilege to be able to stand up. I will not waste it,” she concluded, adding a dragon emoji — a possible reference to her calling husband Ryan Reynolds and former friend Taylor Swift her “dragons” in a text to Baldoni that came out during their court battle.
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