Justin Baldoni is "feeling pretty good" after settling his ongoing legal battle with Blake Lively.

The legal dispute began in December 2024, when Blake accused Justin - who also directed It Ends With Us - of sexual harassment and co-ordinating a smear campaign against her, prompting him and his Wayfarer Studios to hit back with a countersuit against the 38-year-old actress and her husband Ryan Reynolds, accusing the Hollywood couple of defamation and extortion.

But Justin subsequently had his countersuit claims dismissed by a judge and last month, Blake's sexual harassment claims were tossed out on jurisdictional grounds after the judge determined the Gossip Girl actress was an independent contractor rather than an employee, meaning she could not bring sexual harassment claims under Title VII of the Civil Rights Act of 1964, which bans workplace discrimination on the basis of gender.

Earlier this week, the pair reached an out-of-court settlement, two weeks before they were set to go to trial in New York and Justin's lawyer has hailed the move a "huge victory".

Noting his client was "feeling pretty good", attorney Bryan Freedman told TMZ Live: "It was a huge victory. It was an incredible opportunity, and I don't think you pass up an incredible opportunity."

And the lawyer argued the 42-year-old actor "technically" never settled a case but he "won" when Judge Lewis Liman offered last month's summary judgement that excluded 10 or Blake's 13 accusations, leaving the planned trial to focus only on her claims of breach of contract, retaliation in violation of the California Fair Employment and Housing Act, and aiding and abetting in retaliation in violation of FEHA.

Bryan added: "He could breathe again.

"To be accused of sexual harassment on such a public level is devastating.

"What he went through, I get emotional speaking about it because he's such a great human being and stands for everything that is good about women and supporting women."

Blake and Justin issued a joint statement through their representatives earlier this week confirming they had reached an undisclosed settlement.

The statement read: "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 recognise concerns raised by Ms. Lively deserved to be heard.

"We remain firmly committed to workplaces free of improprieties and unproductive environments. It is our sincere hope that this brings closure and allows all involved to move forward constructively and in peace, including a respectful environment online."