Blake Lively made a surprise appearance at the Met Gala on Monday night, just hours after news broke that she settled her legal dispute with Justin Baldoni and his Wayfarer Studios.
The actress walked the famous steps at the Metropolitan Museum of Art in New York City, wearing a pastel-colored Atelier Versace gown with a long train. Her return to fashion’s biggest night marks her first Met Gala appearance in four years, since she co-chaired the event in 2022.
The timing turned heads across the entertainment world. Earlier that same day, reports confirmed that Lively and Baldoni had reached a settlement, avoiding a federal jury trial scheduled to begin May 18 in Manhattan.
Settlement Announced Two Weeks Before Trial
Lively’s legal team and representatives for Baldoni and Wayfarer Studios released a joint statement on May 4, confirming the agreement. The statement did not disclose the terms of the settlement but focused on the film both parties worked on together.
“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. Raising awareness, and making a meaningful impact in the lives of domestic violence survivors – and all survivors – is a goal that we stand behind. 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.”
— Joint statement from attorneys for Blake Lively and Justin Baldoni’s Wayfarer Studios
The legal battle began in December 2024, when Lively filed a complaint accusing Baldoni of sexual harassment on the set of the 2024 film adaptation of Colleen Hoover’s novel. She also alleged that Baldoni and his team launched a smear campaign against her online.
Baldoni denied the claims and filed a $400 million defamation countersuit, which was later dismissed by a judge.
Judge Dismissed Most Claims Before Settlement
In April 2026, U.S. District Judge Lewis Liman dismissed 10 of Lively’s 13 claims, including the sexual harassment allegations. The judge ruled that Lively worked as an independent contractor on the film, meaning she could not bring harassment claims under federal workplace laws.
Liman allowed three claims to move forward: retaliation, aiding and abetting retaliation, and breach of contract. Baldoni was removed as a named defendant, leaving Wayfarer Studios as the remaining party.
Despite the dismissal of her main claims, Lively’s legal team continued pursuing the case until the settlement was reached.
No Money Exchanged in the Deal
Multiple reports confirmed that no money changed hands between Lively and Baldoni as part of the settlement. TMZ and Page Six both reported that neither side received any financial compensation.
Legal fees told a different story. The two legal teams reportedly made a combined $60 million from the 18-month legal fight, according to Page Six.
A source close to the matter told Variety that more details about the confidential settlement would appear on the court docket in the coming days.
Lively still has a pending motion seeking attorneys’ fees and damages under a California law meant to protect sexual harassment accusers from retaliatory defamation lawsuits.
Met Gala Appearance Sends a Message
Lively arrived at the Met Gala wearing an archival 2006 Atelier Versace gown in peach, purple, and yellow tones. The dress featured a bejeweled bodice and a flowing train, similar in scale to her Statue of Liberty-inspired look from the 2022 gala.
The 2026 Met Gala theme is “Costume Art,” with the dress code direction “Fashion Is Art.”
Her husband, actor Ryan Reynolds, did not attend the event with her. However, Reynolds’ “Deadpool & Wolverine” co-star Hugh Jackman walked the red carpet with Sutton Foster.
Online reactions split quickly. Some critics called the appearance “shameless,” noting that she likely planned the timing weeks in advance. Others saw it as a statement that she would not retreat from the public eye.
One legal commentator on YouTube said Lively is “the one who gave up” by choosing to settle rather than prove her case at trial. The attorney explained that as the plaintiff, Lively had the burden of proof, and walking away before trial meant she chose not to continue fighting.
Entertainment journalist Kjersti Flaa, who had a past conflict with Lively, told her YouTube followers that Baldoni allowed the settlement to avoid humiliating Lively in court. Flaa said sources told her Baldoni and his team were exhausted by the case.
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Film’s Success Continues Despite Legal Fight
“It Ends With Us” earned more than $350 million at the global box office following its 2024 release. The movie, based on Hoover’s best-selling novel, tells the story of a woman navigating a relationship involving domestic abuse.
Lively also stars in “Another Simple Favor,” the sequel to the 2019 film “A Simple Favor,” which recently started streaming on Prime Video. Amazon founder Jeff Bezos and his wife Lauren Sánchez served as honorary co-chairs and lead financial sponsors of this year’s Met Gala.
Lively’s attorneys, Michael Gottlieb and Esra Hudson, and Baldoni’s lawyers, Bryan Freedman and Ellyn Garofalo, signed the joint settlement statement.
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