Just hours after the announcement that her 16-month battle with Justin Baldoni had settled, Blake Lively hit the Met Gala red carpet in her first appearance at the event since 2022.

But while the star was all smiles for the camera, behind the scenes Hollywood insiders remain divided on where her career should go next after the ugly battle over the making of “It Ends With Us” finally ended.

“I’m curious if the actual audience ever gave a s–t about this lawsuit,” a top talent agent told TheWrap. “But she’ll probably do something similar to the Baldoni movie — a film that targets the female audience.”

Earlier this week, both sides settled with undisclosed terms, putting to rest what began as a white-hot controversy when the “Gossip Girl” star accused her director, producer and co-star of sexual harassment and orchestrating a smear campaign against her.

By the end, however, public interest in the ongoing and increasingly messy saga had waned, and the settlement came as a relief to many. Judge Lewis J. Liman had previously dismissed 10 of the 13 claims in Lively’s explosive December 2024 complaint, with only allegations of breach of contract, retaliation and aiding and abetting retaliation allowed to go to trial.

“We remain firmly committed to workplaces free of improprieties and unproductive environments,” representatives for both parties said in a joint statement. “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.”

The settlement put to bed one of the most high-profile legal conflicts in the recent annals of Hollywood, one that entangled everyone from Lively’s husband Ryan Reynolds to megastar Taylor Swift and a gaggle of current and former Sony executives, whose private text messages became public fodder.

The controversy ultimately dragged both sides into the mud, with no one coming out unscathed. Lively — who was poised to hit a new level of fame with the success of “It Ends With Us” — saw her career stall out after last year’s “Another Simple Favor.” She has not acted since.

Reps for Lively and Wayfarer did not respond to TheWrap’s request for comment.

Lay low or go big?

Lively does have at least one project already in the pipeline. Last August, TheWrap reported that Lionsgate acquired “The Survival List,” an action romantic comedy that Lively will star in and produce. Oscar nominee and award-winning producer Marc Platt (“Wicked,” “How to Train Your Dragon”) is in talks to produce the film, which was written by Tom Melia and follows a highbrow reality TV producer who gets stranded with a faux survival expert while making a new show.

The project is still in search of a director and remains in development.

But beyond that, the actress and producer has not set any new projects, and insiders are split on whether she should dip out of public view for a while or forge on like nothing happened.

Some who spoke to TheWrap advised a period of quiet for Lively after over a year of making headlines.

“Lay low, let the dust settle in folks’ memories and then start building the next project,” a top manager said.

A longtime publicist echoed that sentiment: “I would go quiet for a little while and spend time with my family. Let the dust settle. It’s distracting at the moment.”

“Her career is not over, but she should spend time with family,” a studio publicist added.

Lively is not without other ventures outside of acting and producing — she has a line of non-alcoholic drinks called Betty Buzz, alcoholic drinks called Betty Booze and a cruelty-free haircare line called Blake Brown, which she launched in 2024. She could spend downtime tending to her brands or launching new ones.

But other insiders took the opposite tack, suggesting Lively should move on with her acting career as usual.

“Hollywood is such a bubble. If I were giving her advice, I would just pretend nothing happened,” a franchise film producer said. “It’s over, most people won’t remember it next week.”

But not everyone was optimistic. “I think her career is over,” a top dealmaker said. “I could be wrong, but I think she needs to sit out for a year or two and then start coming back in a female-driven high-end streaming series and not as the lead.”

A studio executive took a more measured view. “I think she can recover. Offers won’t come flowing in and her fee is going to be greatly reduced initially. But if she can find a ‘Shallows’ or ‘Simple Favor’-type movie I think it works. She’s buy low-sell high in my opinion. Get her for a low fee and she’ll have to work very hard to sell the movie and be on best behavior.”

It’s an ironic assessment given that Lively broke no laws, was not found guilty or liable for any crimes and in fact was the plaintiff in the case against Baldoni. But the stretched-out battle wore on both individuals’ reputations and Baldoni, too, has not set any new projects since Lively’s suit was filed.

But as the Johnny Depp v. Amber Heard case showed, things could have been worse had the Lively/Baldoni case gone to trial. In that defamation case, which was livestreamed and commented upon in real-time, Depp won and is today starring in a Paramount adaptation of “A Christmas Carol” while Heard’s acting career has largely faded away.

The “It Ends With Us” sequel

The future of the “It Ends With Us” franchise, meanwhile, also remains in limbo. The 2024 film, released by Sony Pictures, grossed over $350 million worldwide against a budget of just $35 million, making it a smashing success before the controversy went full-blown public.

But while Colleen Hoover wrote a sequel called “It Starts With Us,” Wayfarer Studios, which was co-founded by Baldoni and optioned the first novel from Hoover in 2019, also holds the option to the film rights for that sequel, so Baldoni would potentially be involved in some capacity. 

It’s unclear if the rights to the sequel were part of the settlement between Lively and Baldoni, or if there’s even an appetite for another film given the controversy surrounding the title.

Whatever the case, all eyes are on what Lively does next.