Snapper Scott Nathan filed suit back in April (10), alleging he was hired to photograph the actress for her clothing label 6126 in return for a one per cent interest in the business, but never received his payment. He also alleged bosses at Lohan's Universal Music Group breached copyright by using one of his pictures on the cover of Lohan's single Bossy.
The Mean Girls star, who is currently serving a three-month stint in rehab, skipped the court showdown with Nathan in Los Angeles to continue her treatment at the Betty Ford clinic, but her lawyers and business partners were able to reach a settlement on her behalf.
Kristy Kaylor, Lohan's 6126 business partner, tells E! News ""It was an amicable settlement.""
The terms of the agreement were kept private.