Blake Lively, with a determined expression, exited a settlement hearing involving Justin Baldoni after six intense hours of negotiation.

Sources reveal that the discussions unfolded in two neighboring courtrooms within the same level of the courthouse.

Spotted swiftly leaving the courtroom, Lively was accompanied by her attorney, Michael Gottleb, as they made their way directly to the elevator.

In contrast, Baldoni appeared at ease, emerging five minutes later. He was seen hand-in-hand with his wife, Emily, 41, as they shared smiles and conversation.

Insiders have confirmed that no agreement was reached, and the parties are scheduled to return to court the following day.

Both Baldoni, 42, and Lively, 38, arrived at the New York City courthouse earlier on Wednesday, dressed in outfits that closely matched, ready for the high-profile It Ends With Us legal confrontation.

A grim-faced Blake Lively, 38, abruptly walked out of her settlement hearing with Justin Baldoni after six grueling hours of negotiations

Baldoni, 42, looked relaxed as he walked out of the courtroom five minutes later hand-in-hand with his wife Emily, 41

Wearing a khaki double-breasted suit, a tan vest over a pink button-up shirt, a green suede purse and a five-leaf clover pin for good luck, Lively walked in alongside her lawyers to face her co-star for the first time since their legal battle began in December 2024.

Smiling Baldoni similarly wore an olive teddy coat with a pink scarf as he entered the courthouse alongside his lawyer, Bryan Freedman.

Ryan Reynolds was conspicuously absent when Lively arrived at court this morning, but Baldoni had Emily firmly by his side for support. 

More than a year after filing a complaint accusing Baldoni of sexual harassment and retaliation on the film’s set, the parties will make a last-ditch attempt to resolve the dispute at a court-ordered settlement conference at the US District Court in Manhattan – their final chance to avoid a May 18 trial.

The hearing, overseen by Judge Sarah L Cave, will be closed to the media and public as she presses both sides toward a potential settlement.

At 12.30pm, a cart loaded with chicken sandwiches and salads was seen being wheeled into one of the courtrooms, suggesting that both sides would continue working through lunch.

Baldoni briefly poked his head out of the courtroom shortly after lunch.

Lively arriving at court on Wednesday morning for her showdown with Baldoni 

Baldoni turning up for the ‘settlement conference’ at the US District Court in Manhattan

He was wearing a white turtleneck sweater with the sleeves rolled up and had a serious expression on his face.

Baldoni asked a court security officer where his wife Emily was shortly before she had left the courtroom.

Lively was the first to sue Baldoni and claimed sexual harassment on the set of the film that they both starred in and that he directed.

She is demanding $161 million for personal and financial losses due to the alleged retaliation and smear campaign against her.

Baldoni responded with a $400 million defamation suit against Lively, her husband Reynolds and the New York Times, which reported on the actress’s claims, but a judge dismissed it.

Neither actor attended their previous settlement conference on January 22, just days after a trove of legal filings spilled Lively’s private, and often explosive, text messages with A-list friends.

Baldoni has Emily firmly by his side for support during the settlement talks

Lively walking into the NY district court alongside her lawyer

The messages included one she sent the day after filing her complaint, in which Lively celebrated Baldoni being dropped by his powerhouse agency, WME, with Taylor Swift by her side.

The victory lap texts, exchanged on December 21, 2024, according to court papers, began with Swift telling Lively: ‘You won. You did it.’

‘You f***ing helped so many people who won’t have to go through this ever again,’ Swift later added.

After all the negative publicity Blake had received about her ‘insensitivity’ to the domestic abuse theme of the film during its promotion, Swift said: ‘Never has a cancellation been reversed so fast.

‘You guys don’t understand how rare this is. To have proof and to take the perfect steps to bring that truth to light.

Lively replied: ‘Like. My. God.’

Then: ‘I love you so much. I would not be ok through any of this if it weren’t for you.’

The texts were revealed in a lengthy court document filed in the federal court in New York in which Lively responded to dozens of claims made by Baldoni.

She is demanding $161 million for personal and financial losses due to the alleged retaliation and smear campaign against her 

Last month, legal filings related to the case spilled Lively’s private messages with Taylor Swift 

In the file, Baldoni’s lawyers wrote: ‘On April 12, 2023, Lively asked her friend, the world-famous musician Taylor Swift, for help.

‘Referring to Baldoni as “this doofus director of my movie”, she went on to describe him as “a clown” who “thinks he’s a writer now”.

‘She asked Swift to endorse the revised script she was proposing even without having read it.’

One text to the singer from Lively read: ‘You don’t have to read of course.’

In another part, the court document states: ‘Swift agreed to do Lively’s bidding, texting Lively: “I’ll do anything for you !!”‘

Lively’s side disputed that she asked Swift to endorse the script without reading it, only that she ‘hoped she would’. 

Lively has alleged that the erosion of her public image is due, in part, to a coordinated smear campaign orchestrated by Baldoni’s team after she spoke out about sexual harassment – claims his attorneys have vehemently denied.

The actor’s legal team previously sought to have Lively’s allegations of sexual harassment thrown out before their May trial at the last settlement hearing.

However, the judge did not rule on Baldoni’s motion for dismissal and said he would do so later.