Lively accused Baldoni of sexual harassment and co-ordinating a smear campaign against her in a lawsuit filed a few months after the release of the 2024 romantic drama, which Baldoni also directed.
A judge had dismissed most of the star’s claims, including harassment, but allowed three claims to proceed to a trial: breach of contract, retaliation, and aiding and abetting in retaliation.
The trial, which was due to begin in New York, will no longer go ahead following the settlement agreement.
The rift between the two co-stars became public in December 2024, when Lively filed a complaint with the California civil rights department, followed by her lawsuit. However, there had been speculation in the months beforehand as the pair promoted the film separately following its realease.
Baldoni and his Wayfarer Studios production company countersued Lively and her husband, Deadpool actor Ryan Reynolds, accusing them of defamation and extortion. His case was dismissed by a judge in June last year.
The case sent shockwaves through Hollywood, revealing private texts among A-listers – including singer Taylor Swift – and raising questions about the power, influence and gender dynamics in the industry.
It Ends With Us is an adaptation of Colleen Hoover’s bestselling 2016 novel, a story which begins as a romance but takes a dark turn into one of domestic violence and abuse.
Lively is known for the TV series Gossip Girl and other films including The Town and The Shallows.
Baldoni starred in the TV comedy Jane The Virgin, directed the 2019 film Five Feet Apart, and is the author of Man Enough, a book challenging traditional notions of masculinity.
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