Lohan, 27, sued for $1.1 million alleging she had been stiffed in royalties. The leggings company fired back with a lawsuit against the actress for failure to adequately promote the line.
According to court documents filed on May 15, “a settlement conference held. Agreement is reached for resolution of all claims among parties. Payment to be made by Defendants to Plaintiff in the sum of $150,000. Documentation to be completed and stipulation for dismissal filed within thirty days.”
Just last week Lohan told the court she’d been too distressed by her alleged miscarriage and the burdens of supposed sobriety to respond to the lawsuit.
DNAM served Lohan papers in the case “over the Christmas and New Year’s holidays,” according to papers obtained by Radar, but she never responded and a court found her in default. And so, she brought her sob story for the judge asking for more time to file her response.
“When I was in rehab, [my attorney] was unable to contact me to discuss the case,” she said in the documents.
“After I completed my 90 day program I moved back to New York.”
And ever since, she wrote, “I have been overwhelmed since leaving rehab and dealing with my sobriety and a miscarriage.”
Multiple sources insist that Lohan’s miscarriage story was a ploy “to garner sympathy and explain unprofessional behavior.”