As far as what actions Kate is taking against Michael in regards to the photos -- all she would say is that it's up to her lawyers, and that she "never wanted any of this."
TMZ spoke to Michael who flat out denies selling the photos -- which recently surfaced on several sites including Kikster.com -- and insists they were stolen.
Lohan adds, "I feel really bad for the way things have unraveled, she's a really good person at heart."
