Blake Lively's $500M Lawsuit Against Justin Baldoni Heads to Trial After Mediation Fails — Taylor Swift's Leaked Texts Surface

They spent six hours in the same building. They never spoke. And nothing got resolved.

Blake Lively and Justin Baldoni arrived separately at Manhattan's Daniel Patrick Moynihan United States Courthouse on Tuesday for what was supposed to be a last-ditch settlement conference. By the end of the day, both exited through a crowd of cameras without a word.

The It Ends With Us co-stars hadn't been in the same room since principal photography wrapped in early 2024.

Baldoni's attorney, Bryan Freedman, confirmed what everyone suspected: the talks failed.

'I do think it will go to trial,' Freedman told reporters outside the courthouse. 'We're looking forward to it.'

What the Leaked Texts Actually Say

This case stopped being a typical celebrity lawsuit the moment private messages went public. Unsealed court documents last month showed how Hollywood's inner circle really talks when they think no one's watching.

Taylor Swift, Lively's close friend at the time, texted her in December 2024: 'I think this bitch knows something is coming because he's gotten out his tiny violin.' She was reacting to a People Magazine post about Baldoni.

Lively called Baldoni a 'doofus director' and a 'clown' who 'thinks he's a writer now' in other exchanges. Co-star Jenny Slate wrote that the shoot 'has been a really gross and disturbing shoot, and I'm one of many who feel [this] way.'

But the most explosive comment came from inside Sony itself.

Andrea Giannetti, the studio's executive vice president of production, admitted in deposition that she called Lively a 'f---ing terrorist.' Why? Lively had threatened to walk off the film unless Sony signed a 17-point list of demands without changes. The studio signed it. They had already invested $28 million (£20.5 million).

'There was a tremendous amount of money that had been invested and spent, and we had to finish the movie or it was unreleasable,' Giannetti testified.

The Numbers Behind the Fight

Lively is suing Baldoni, his production company Wayfarer Studios, and others for nearly $500 million (£366million). She accuses him of sexual harassment on set and running a coordinated smear campaign to destroy her reputation after she raised concerns about his behaviour.

Baldoni hit back with a $400 million (£293 million) countersuit against Lively, her husband Ryan Reynolds, and their publicist. He claimed she 'robbed' him of creative control and ruined his reputation with false allegations.

That countersuit is dead. A federal judge dismissed it in June 2025. Baldoni let the deadline to file an amended complaint pass in October. He chose not to refile.

So, when the trial begins on 18 May 2026, only Lively's claims will be on the table. Baldoni will be defending, not attacking.

Why This Fight Won't Stay in Hollywood

It Ends With Us made $350 million (£257 million) at the box office on a reported $25 million (£14.7 million) budget. The book it's based on — a story about a woman escaping domestic abuse — sold millions of copies. The irony isn't lost on anyone: a film about abuse is now at the centre of abuse allegations.

For anyone who's dealt with a toxic workplace or watched a complaint get buried, this case hits different. Slate's texts show she and Lively 'both complained directly' to Sony about on-set issues. Giannetti's deposition suggests those complaints weren't treated as sexual harassment concerns warranting HR involvement.

'Those incidents alone were not reason to call HR for a movie that we were cofinancing and distributing,' Giannetti said.

The trial will force A-list testimony. Cross-examinations. Public records. Everything that the settlement would have buried stays in the open.

What Comes Next

'There's always a chance' of future settlement, Freedman said Tuesday. But he added: 'I don't know that we will' resume talks.

Magistrate Judge Sarah L. Cave spent the day shuttling between both legal teams in separate courtrooms, according to sources familiar with the proceedings. She couldn't close the gap.

Both sides face serious risks going forward.

Lively's private messages show her coordinating celebrity endorsements and calling her director names. Baldoni's countersuit is gone, and multiple women have backed Lively's account. Sony executives praised Lively's 'blood, sweat, tears' when the film opened big — the same executives who called her a terrorist weeks earlier.

They spent six hours in the same building on Tuesday. Come May, they'll spend weeks in the same courtroom.