Raymundo Ortega filed papers in Los Angeles last month, claiming Lohan had been drinking at celebrity hotspot The Ivy just before the accident, when the actress smashed into his red van.
He is suing both Lohan and The Ivy for damages.
But lawyers acting on behalf of the Mean Girls star have been quick to respond.
In legal documents filed last week, Lohan's legal team insists the accusations are "nothing more than an attempt to extort money from a celebrity by setting forth false and scurrilous allegations in a complaint."
And indeed the lawyers' denial seems to follow what was reported at the scene of the crash.
In a police document, obtained by TMZ.com, an officer wrote, "I did not observe any objective signs of either alcohol or drug intoxication and determined that no further investigation regarding intoxication was warranted."
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