The troubled actress is taking legal action against a man who accused her of hit and run … not so much because of the hit and run part, but because he claimed she was drunk at the time.
Lindsay was arrested last week after Jose Rodriguez claimed she had clipped and injured his knee while entering the car park at her New York hotel.
He later told a reporter that Lilo was slurring her words and "smelled like alcohol real bad" when she got out of the car.
Cops say the star was sober at the time and CCTV footage of the incident (above) put the "victim's" claims in doubt.
TMZ reports that Lindsay is worried the negative press could affect her chances of getting work, so she's suing her accuser for defamation.
"I'm tired of people lying just to score a quick pay cheque," TMZ reports her as saying.
This hasn't been a good week for Lindsay: the actress was taken to hospital last night with a bad lung infection. She was treated with antibiotics and is resting in her New York hotel room today.