Tracie Rice says that in July of 2007, she was the passenger in a car driven by the mother of Lohan's former assistant and that Lohan was driving another car and chasing them down the Pacific Coast Highway. The pursuit ended in the actress's arrest. Rice then filed a lawsuit stating she was traumatized and lost a well-paying job because of it. No details of the settlement, which was reached on Friday, were released.
"Lindsay is very pleased to put this unfortunate event behind her," her attorney, Ed McPherson, said in a statement.
Last month, the 24-year-old was sentenced to 120 days in jail and 480 hours of community service for violating probation from her 2007 DUI case. On Thursday she began serving her term on house arrest due to jail overcrowding.