Blake Lively, Justin Baldoni stayed in separate rooms for Day 1 of settlement talks

• Blake Lively and Justin Baldoni were in court Wednesday in a last-ditch effort to avoid a trial.
• They stayed in separate rooms during the settlement talks, which will resume on Thursday.
• Their high-profile feud began during the filming of 'It Ends With Us" directed by Baldoni.

The real-life Hollywood drama of Blake Lively and Justin Baldoni played out behind closed doors in a New York City courthouse on Wednesday — and will continue for a second day on Thursday.

After a day of negotiations, the actors and their legal teams left a Manhattan federal court without a settlement in their high-profile legal battle, which began in 2024 when Lively sued Baldoni over their collaboration on the film "It Ends With Us."

The two sides spent six hours in separate but adjacent courtrooms, sealed to the press and public, as their lawyers hashed out a possible deal with a magistrate judge.

Baldoni and his wife, Emily Baldoni, appeared in high spirits as they left their courtroom, hand in hand and chatting amiably.

Lively attended without her Deadpool star husband, Ryan Reynolds. She and her attorneys wore grim faces as they left their own courtroom.

"Yes, we are back tomorrow," one of Lively's attorneys told Business Insider.

It was the first time the actors had faced off in court since their legal battle erupted into public view.

The conflict, which generated months of wall-to-wall news coverage, began during the filming of "It Ends With Us," a film directed by Baldoni and starring Lively that was released in August 2024. The "Gossip Girl" actress sued the director in December 2024, alleging sexual harassment and a smear campaign she said was orchestrated by Bladoni.

Baldoni counter-sued in 2025, claiming extortion, defamation, and invasion of privacy. His lawsuit has since been dismissed.

Wednesday's conference is part of a last-ditch effort by US Magistrate Judge Sarah Cave to put the case to bed ahead of the May 18 trial.

A settlement would close the book on a series of pending legal headaches for the judge, including whether to trim the scope of Lively's lawsuit or sanction Baldoni based on Lively's claim that his side hid documents.