The actor filed the lawsuit in the Los Angeles Superior Court after the Times wrote a story about Lively's sexual harassment and retaliation allegations.
Lively claimed Baldoni sexually harassed her on the set of their movie and that after they addressed his alleged behavior, he tried to destroy her reputation.
Karen's bombshell response came two months after she was sued by her estranged husband's new girlfriend, Dr. Cat Jarman, for misuse of private information.
The "Fight Club" star is "relieved to put this chapter behind him" after finally reaching an agreement with his ex-wife Monday, a source tells Page Six.
"I don’t drink or go to the club, so this is how I find my entertainment. You know, it's probably not the best way to do it ... Sometimes, you want to have a little fun," she said.
