Stephen Clark claimed he sold a set of speakers to the Mean Girls star and helped to install audio and video equipment in her Venice, California home in June (11), while she was on house arrest for a probation violation.
Clark alleged the actress failed to pay up once the work was complete and subsequently filed suit against Lohan in a small claims court for $1,180 (£737.50).
Reports of the legal action surfaced on Monday (25Jul11), and Clark reveals Lohan settled the debt just two days later, on Wednesday (27Jul11).
He tells TMZ.com, ""She paid and I cancelled the small claims file. Lindsay is actually really nice and I think my invoice got mixed up or something... It's all good now!""