The 29-year-old actress along with her brother Michael Lohan Jr. are suing Fima Potik, 30, over a failed shopping app - the idea for which the businessman falsely said they stole.
The lawsuit was taken to a Manhattan court on Thursday (06.08.15) where Michael said he was suing him for $60 million (£38.7 million) as Fima didn't have an app design to steal in the first place.
According to New York Post newspaper's Page Six column, the siblings' lawyer, Ravi Batra, said: "He's a celebrity leech who has abused the court system."
Lindsay - who now lives in London - was not present for the hearing, where the judge Saliann Scarpula gave the defendant 30 days to find new counsel after his lawyers refused to continue representing him due to mounting unpaid legal bills.
And Lindsay and Michael's lawyer is planning to bring contempt and sanctions motions against the entrepreneur, insisting the lawsuit delayed the launch of the family's fashion brand Vigme.
Fima declined to comment on the case and while he has been ordered to provide documents to prove what the family stole from him, he has so far failed to do so.