Hollywood is buzzing with talk of serious reputational damage for Blake Lively following a nasty legal battle with actor-director Justin Baldoni, who is reportedly gearing up to tell his side of the story, sources tell RadarOnline.com.

Per Radar Online, the clash erupted in December 2024 amidst friction during the making of the domestic abuse drama "It Ends With Us", which Baldoni directed and starred in with Lively.

Lively, 38, accused Baldoni, 42, of sexual harassment and alleged he orchestrated a smear campaign against her. Baldoni and his production company, Wayfarer Studios, denied the claims and countersued Lively and her husband, actor Ryan Reynolds, for defamation and extortion. This week, both parties confirmed an undisclosed out-of-court settlement had been reached.

Adam Mondscheina, an actor in the film, publicly sided with Baldoni during the legal proceedings. "She hurt my friend and has been hurting my friend," Mondschein said regarding Lively's actions. He added that Baldoni really wants to tell his story and deserves to be heard.

An insider close to the production said many involved believed Baldoni was unfairly portrayed throughout the case. "Justin feels vindicated by how much of the case changed before settlement talks began," the source said. "There is a sense among his supporters that Blake misjudged how aggressively this would be challenged."

According to AOL, industry sources claim Lively's public image has taken a hit despite the settlement. One insider described her as the utter loser in the dispute, noting she entered the conflict as a powerful figure in entertainment but now faces questions that have left her viewed as toxic. "People will be very wary of working with her now," the source said. The insider also warned that if Baldoni pursues a book or tell-all interview, it could totally destroy her.

Mondschein suggested Baldoni has mixed feelings about the settlement. While relieved the conflict has ended, he is disappointed about missing the chance to argue his case fully in court. "I can't imagine what it must be like to be inside of [Lively's] mind," he said.

Baldoni's attorney, Bryan Freedman, described his client as ecstatic following the agreement. He noted that by the time settlement discussions began, most claims had been dismissed through summary judgment motions, leaving a much narrower case.

In a joint statement, Lively and Baldoni expressed pride in their work on "It Ends With Us" and a shared commitment to supporting survivors of domestic violence.

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Blake Lively