Risk of Ryan Reynolds Divorce Revealed as the Real Reason Blake Lively Settled Justin Baldoni Suit—She Wasn’t ‘Ready to Lose Her Marriage’
It Ends With Us costars Blake Lively and Justin Baldoni have settled their legal battle, with sources saying Lively’s husband Ryan Reynolds played a key role in bringing it to a close.
On May 5, Rob Shuter reported on his Naughty But Nice Substack that Reynolds had allegedly urged Lively to consider ending it “long before she was ready.”
“Ryan saw the full picture early,” an insider told Shuter. “He knew the longer this dragged on, the more it would erode everything—her career, her reputation, even their closest relationships.”
Lively refused to back down, though, and those close to the Gossip Girl alum said the lawsuit become “deeply personal” to her. “It wasn’t about winning anymore — it was about proving she was right,” a source explained. “She couldn’t see how much it was costing her in real time.”
The lawsuit reportedly affected Lively’s friendships and even damaged her reputation. It also seemingly put strain on her marriage, but sources claimed she eventually agreed to move on, with her marriage to Reynolds weighing heavily in her decision.
“The realization hit her all at once,” an insider says. “She had already lost too much—professionally, personally, publicly. The one thing she refused to lose was her marriage.”
Even as Lively’s moves past the situation, it may take a lot of effort to rebuild her image and repair professional relationships that were destroyed along the way.
A source told The Daily Mail, “The general view now is that she’s made her bed and she can lie in it. I don’t think people in Hollywood are shedding tears over her.”
An unnamed Disney Studios executive who previously worked with Lively also told the outlet that case “has ruined her in Hollywood.”
Baldoni and Lively’s legal drama began in December 2024, when Lively sued Baldoni over alleged sexual harassment on set. Baldoni denied the allegations and countersued for $400 million, but that suit was dismissed in June 2025.
In April 2026, a judge threw out a number of of Lively’s claims, including sexual harassment and defamation. By early May, she and Baldoni finalized a settlemnet.
On Monday, May 4, lawyers representing both parties released a joint statement confirming the agreement: “The end product—the movie It Ends With Us—is a source of pride to all of us who worked to bring it to life,” the statement read, per TMZ. “Raising awareness, and making a meaningful impact in the lives of domestic violence survivors—and all survivors—is a goal that we stand behind.”
The statement continued, “We acknowledge the process presented challenges and recognize concerns raised by Ms. Lively deserved to be heard. We remain firmly committed to workplaces free of improprieties and unproductive environments. 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.”
