The McFly singer recalled spending time with the actress after the band cameoed in her 2005 movie Just My Luck.
When the band attended a party in New Orleans, Lohan reportedly seduced the Strictly Come Dancing winner in a bathroom.
"We drove to the restaurant, but we hadn't even walked in before Lindsay started reeling off to me all the Hollywood A-listers she'd been with, before explaining that she preferred older men," he is quoted as saying in The Mirror.
"As we sat and ate, she told us all these stories - graphic stories about her sex life, enough to put us off our steaks.
"Later we met up with other members of the cast and crew at Club 360, a revolving penthouse venue overlooking the French Quarter. Under the staircase was a room, dimly lit with red lights. A bed in the middle, and on the bed a couple having sex, there for everyone to see. The kind of party bands should be going to."
Judd continued: "Lindsay grabbed me by the hand and followed me into a bathroom. Then she shut the door behind us. As I turned around, she lunged at me. This was full on and it lasted for quite some time."
After returning to Lohan's hotel suite at 4.30am, the pair allegedly continued where they left off on her double bed. However, Judd's drunken bandmate Danny Jones bundled in.
"She was doing everything she could to fuel my ego, telling me how she loved my accent and how she didn't get with actors any more, only musicians," Judd recalled.
"It makes me cringe to think about it now, but I responded in kind. This was like Notting Hill, I told her. I was Hugh Grant and she was Julia Roberts. She loved that.
"Then things started to get a bit more serious. A bit steamier. One thing led to another. We moved from first base to second base, and then, just as I was about to seal the deal, Danny walked in, 'Oh sorry, mate!'
He added: "For a while Lindsay and I carried on getting a bit frisky, but gradually she started to sober up.
"'You've got to leave before eight', she said. I didn't really want to leave. We had unfinished business.
"But then she announced she was tired, pulled one of those airplane eye-masks over her eyes and went to sleep. So much for my romantic night of passion."
McFly will release their new 'Best Of' compilation Memory Lane on November 26.
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