The 'Liz & Dick' star has settled out of court with Elite Transportation Limo and Security Services who were suing her for failing to pay her $90,585.79 bill from three years ago.
The 26-year-old troubled starlet - 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, according to gossip website TMZ.com.
The company is said to charge a hefty $6,000 an hour for its services.
News of the settlement comes after Lindsay 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, Lindsay'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 Lindsay - 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.
Lindsay is "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.
