"It Ends With A Trial": Settlement Talks Collapse Between Blake Lively and Justin Baldoni

Blake Lively and Justin Baldoni faced off in a Manhattan federal court for six hours of mediation, but failed to reach a settlement. The $160M trial begins in May.

By: AXL Media

Published: Feb 28, 2026, 6:59 AM EST

Source: Business Insider

Inside the Courthouse: A Tense and Silent Face-Off

The atmosphere at the Manhattan federal court was described by observers as "electric with tension." Lively and Baldoni arrived separately, navigating a massive media scrum. While the mediation occurred behind closed doors, sources indicate the two actors were kept in separate rooms for the duration of the six-hour window while their legal teams shuttled between them. Neither party was reportedly willing to compromise on the primary demands: a massive financial payout from Lively’s side and a public admission of wrongdoing from Baldoni’s side.

The "Taylor Swift" and "Ryan Reynolds" Evidence

A significant portion of the tension stems from recently unsealed court documents, which include private communications that have now been entered into evidence. These include:

The Swift Texts: Messages allegedly showing Lively seeking advice from close friend Taylor Swift on how to handle "toxic" dynamics on set.

The Reynolds Defense: Sharp messages from Lively's husband, Ryan Reynolds, defending his wife and criticizing Baldoni’s directorial choices. These communications are expected to be central to the trial in May, with a witness list that reportedly includes high-profile names like Gigi Hadid and Hugh Jackman.