Blake Lively and Justin Baldoni’s legal settlement was reportedly influenced by a key person behind the scenes.

According to a recent report by Rob Shuter’s Substack blog Naughty But Nice, the 38-year-old actress’s husband, Ryan Reynolds, encouraged her to reach a settlement after noticing that the legal dispute with her It Ends With Us co-star was beginning to seriously impact major aspects of her life.

“Ryan saw the full picture early, He knew the longer this dragged on, the more it would erode everything — her career, her reputation, even their closest relationships,” a source told the outlet.

Not only Reynolds reportedly feel that way, but Lively’s close friends also began to believe the case had stopped being entirely legal and had instead become deeply personal.

The insider added, “It wasn’t about winning anymore — it was about proving she was right. She couldn’t see how much it was costing her in real time.”

The legal battle with Baldoni reportedly affected both the Gossip Girl alum’s personal and professional life, and the one thing she did not want to jeopardize was her 13-year marriage to Reynolds.

“She had already lost too much — professionally, personally, publicly. The one thing she refused to lose was her marriage,” the tipster claimed.

The settlement was announced by Lively’s attorneys, Michael Gottlieb and Esra Hudson, along with Baldoni’s Wayfarer Studios lawyers, Bryan Freedman and Ellyn Garofalo. The parties reportedly reached an agreement after one and a half years, ahead of the trial date set for May 18.

When did the legal dispute start?

The legal dispute between Blake Lively and Justin Baldoni emerged in December 2024, four months after the release of their film It Ends With Us.