The 26-year-old 'Liz & Dick' star has settled out of court with Elite Transportation Limo and Security Services who were suing her for failing to pay her USD 90,585.79 bill from three years ago, reported TMZ online.
Lohan, who still has other on-going legal troubles and believes that Los Angeles police have a 'vendetta' against her - has reportedly paid the limo company back the entire amount she owed after using their luxury services from February to May 2009.
The company is said to charge a hefty USD 6,000 an hour for its services.
News of the settlement comes after Lohan pulled out of a planned interview with Barbara Walters this week.
She was due to appear on '20/20' to talk about her new TV movie about Elizabeth Taylor but with recent allegations of lying to police about a car accident in June and public spats with her parents, Lohan's PR team decided it was best to cancel the interview.
The actress believes law enforcement in LA have a "vendetta to bring her down" and thinks they are pushing for her to be jailed for allegedly lying about being behind the wheel of a car when she crashed in June.
Reports suggest charges will be filed against Lohan, who is still on probation since being found guilty of stealing a necklace in July 2011, for which she was sentenced to 120 days in prison and 480 hours of community service - for lying to police.
Lohan is reportedly "terrified" of going back to jail because Judge Stephanie Sautner has told her she will violate her current probation if she breaks the law again.