Blake Lively and Justin Baldwin's lawyers have been called into fresh legal discussions over a possible settlement in their long-running dispute.

It emerged on Friday (03.04.26) - just one day after a judge dismissed actress Blake's sexual harassment claims tied to the film It Ends With Us - that attorneys for Blake, 38, and director Justin, 42, are now set for separate calls with US Magistrate Judge Sarah Cave, after a ruling by Judge Lewis Liman significantly narrowed the case.

The pair's long-running dispute centres on allegations made by Blake relating to her experience on the set of the film, including claims of sexual harassment and a toxic work environment, which were brought against Justin and associates linked to Wayfarer Productions.

According to reporting by the Daily Mail, both sides have been instructed to address "their client's updated settlement position" in private sessions, with Blake's legal team scheduled first, followed by Justin's representatives an hour later. The calls will not be open to the public.

Blake's lawyer Michael Gottlieb said: "The court's ruling that Ms. Lively's state and federal harassment claims could not go to trial was about legal issues rather than an endorsement of the defendants' conduct."

He added: "The court held that Ms. Lively's sexual harassment claims could not go to a jury because Ms. Lively did not sign a contract, that she is an independent contractor instead of an employee, and that the offensive conduct occurred in New Jersey instead of California."

Originally, Blake brought proceedings in December 2024 alleging she had been subjected to sexual harassment and inappropriate conduct during filming.

Her claims included accusations Justin crossed professional boundaries on set, including allegations he kissed her during a scene where it was not scripted, entered her trailer while she was breastfeeding, and that a producer showed her a video of his wife giving birth.

Justin denied the allegations and later filed legal action against Blake, her husband Ryan Reynolds and the The New York Times, which had reported on the dispute.

Judge Lewis Liman ruled key contracts cited by Blake were "unenforceable" because she had not signed them.

He wrote: "It is clear that the ALA is not and has never been a validly formed and binding contract, as IEWUM (It Ends With Us Movie) unambiguously expressed an intent not to be bound absent a fully executed and signed agreement".

Justin's lawyers Alexandra Shapiro and Jonathan Bach said: "We're very pleased the Court dismissed all sexual harassment claims and every claim brought against the individual defendants: Justin Baldoni, Jamey Heath, Steve Sarowitz, Melissa Nathan, and Jennifer Abel."

They added: "These were very serious allegations, and we are grateful to the Court for its careful review of the facts, law and voluminous evidence that was provided. What's left is a significantly narrowed case, and we look forward to presenting our defense to the remaining claims in court."

Sigrid McCawley, part of Blake's legal team, said: "This case has always been and will remain focused on the devasting retaliation and the extraordinary steps the defendants took to destroy Blake Lively's reputation because she stood up for safety on the set and that is the case that is going to trial."

She added: "Sexual harassment isn't going forward not because the defendants did nothing wrong but because the court determined Blake Lively was an independent contractor, not an employee."