Lohan dropped the lawsuit — in which she claimed the financial company based the "milkaholic" baby named Lindsay in its ad after her — on Monday, according to a Manhattan court filing. Details were not disclosed.
E*Trade Financial Corp. spokeswoman Susan Hickey told The AP that the case's end reflected a "simple business decision."
In March, the 24-year-old filed a $100 million lawsuit, claiming E*Trade was profiting from its television spots that used her "name and characterization" without her consent or compensation.
The advertisement features a talking baby asking her talking baby boyfriend if he's been spending time with "that milkaholic Lindsay."
"Milk-a-whaaaat?" baby Lindsay coos.
"They're using her name as a parody of her life. Why didn't they use the name Susan? This is a subliminal message. Everybody's talking about it and saying it's Lindsay Lohan," Lohan's lawyer, Stephanie Ovadia, told the NY Post in March.
In an April court filing, lawyers for E*Trade wrote, "No reasonable person would connect (Lohan) with the E*Trade commercials."
Lohan's legal woes are far from over, though: On Monday, a judge issued a warrant for her arrest after the actress admitted to failing a drug test. Lohan, who was recently released from jail and rehab, will remain free pending a Friday court hearing.
Watch the E*Trade "Milk Baby" ad below.