The actress - who was accused of being violent with a member of staff at the rehabilitation clinic in 2010 - is said to have reached a settlement with the employee.
Lohan said at the time that she was provoked by the alleged victim Dawn Holland, and may have injured her in self-defence.
Holland sued the 25-year-old following the incident, where she was allegedly opposed to taking a breathalyzer test.
According to the prosecutor, Lohan appeared intoxicated at the time of the incident and Holland - now known as Dawn Bradley - says that the actress grabbed her right wrist, "twisting and pulling it for eight to ten seconds".
TMZ now reports that the case has been resolved for an undisclosed amount.
It emerged last week that Lohan has escaped criminal charges for her alleged hit-and-run in March.
The Mean Girls actress was accused of striking nightclub manager Thaer Kamal with her car and driving away from Sayers Club in Hollywood on March 13.
However, prosecutors have cleared Lohan's name after a video documenting the incident failed to show any collision between Kamal and the vehicle.