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Lohan Settles Up with

2007 Car Chase Victim

5/27/2011 10:19 AM PDT BY TMZ STAFF

Lindsay Lohan is making progress with her laundry list of legal problems -- TMZ has learned, she finally struck a settlement with the woman who claims the actress terrorized her in a 2007 car chase.

2007 Car Victim

Sources close to Lindsay tell TMZ, the actress' car insurance company ultimately coughed up the dough for a financial settlement with Tracie Rice -- the woman who sued Lindsay back in 2008, claiming the infamous Santa Monica car chase was "one of the most frightening experiences of my life."

The lawsuit was dismissed on Wednesday.

As we previously reported, Lohan was busted for DUI during the incident ... after cops learned she was hammered when she commandeered someone else's car while three young guys were still seated inside. 

The three guys gave TMZ an unbelievable blow-by-blow soon after the incident (below) -- their lawsuit against the actress is still ongoing.

67 COMMENTS

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46.

ilovegossip    

Sometimes you just have to laugh...

Lindsay gets sentenced to 480 hours of Community Service, and they call it 'winning'. Lindsay becomes a convicted thief, and they call it 'winning'. Lindsay gets sentenced to 35 days of house arrest, and they call it 'winning'. Lindsay settles a lawsuit out of court, and they call it 'winning'.

I'd really like to see what their idea of losing is!

1189 days ago
47.

Ghost Rider    

The Lohans would consider Lindsay and Pauly Shore hooking up as Winning. I would consider that losing, but Pauly Shore is an A-lister to the Lohans Im sure.

1189 days ago
48.

Ghost Rider    

When you compare Pauly Shore and Lindsay Lohans imdb files they have some resume let me tell ya. Pauly Shore is known for movies like Encino Man, Son in Law, and Jury Duty. Lindsay is most known for Herbie Fully Loaded, Mean Girls, and Freaky Friday. These two are practically Hollywood history already, and could be the next MEGA celebrity couple imo.

1189 days ago
49.

stargazer    

Um, making progress? She had very little to do with this, other than terrorizing the other driver. The car insurance company settled the claim, not Lindsay, not her lawyer.

1189 days ago
50.

Ghost Rider    

Since Lindsay was banging David Spade at one point in her life, banging Pauly Shore would be a step in the same direction for Lindsay, so she might as well. They could help each other with there comebacks. What would there names be merged into? Shorehan? LoShore? Linauly?

1189 days ago
51.

Justsay Nohan    

"Paulsay". As in cere- no, too mean.

1189 days ago
52.

Chaps    

Lielow is actually a cool chick, but Herb-ie the Love Guru bug infested her body and now she is possessed.

herbie on crack, forget the bud

1189 days ago
53.

Chaps    

Say

How many minutes of the 32,000 she was condemned too, has that little leslo attended to?

1189 days ago
54.

Chaps    

These adventures of lilos and chuckles are costing them gazillions and ruining their careers.

Too bad soo sad, give someone else with a brain a chance!

1189 days ago
55.

Ghost Rider    

Lindsay Lohan + Pauly Shore = Winning

1189 days ago
56.

Justsay Nohan    

Julia,

So you're saying Lindsay should only be punished for her criminal acts in criminal courts? What do the victims get out of that? Not justice and certainly not financial restitution.

People who commit a crime can be prosecuted in both courts. The first is supposedly for justice while the second is for victim compensation.

Look at her current sentence given her past criminal history. Even TMZ is laughing at her and mocking the court's decision. This isn't justice. Not by a long shot. However, if she loses a few million dollars on a civil case, maybe - just maybe - she'll finally take notice and see the gravitas of her actions.

Hit her where it hurts, not where it tickles.

1189 days ago
57.

Blood Red Witch    

I still want to know what kind of car insurance policy covers the policy holder hijacking a car and chasing people??? Really! They paid out to the passanger in the car she chased. What kind of policy is that? I never got offered that kind of option when I buy car insurance.

1189 days ago
58.

Ghost Rider    

I believe anyone guy or girl that would be interested in Lindsay, is because there would never be a dull moment, never. Some people just cant be with boring people. I also believe that the reason anyone who would be dumb enough to stalk this girl, has to do with unresolved High school issues, that later turn into life issues. I dont think they know she is nothing like her character in Mean Girls, Nothing. Shell run your foot over and not even care you know.

1189 days ago
59.

dreamon    

Where does it say she paid anyone millions of dollars?

1189 days ago
60.

Sarah    

Good for her, it shows that she is trying to get her life back on track.

1189 days ago
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