This is seven months after she threated to do so.
She filed the suit on Wednesday against Rockstar Games and Take-Two Interactive Software.
Lohan believes that a minor in-game character, Lacey Jonas, is based on her likeness. The suit also notes that the game features the infamous Chateau Marmont hotel, where Lohan once lived in West Hollywood.
In the game, meeting Jonas launches an optional side mission in which players must escape an aggressive gang of paparazzi.
“Can you give me a ride past them, please?” asks the character. “I’m hardly wearing any makeup. This is a disaster. I’m so [expletive] fat. How’s my hair? Do I look cute?”
A representative from Take-Two declined to comment, noting that the company does not publicly discuss legal matters.
Earlier this year, Karen Gravano, daughter of Sammy “The Bull” Gravano and former star of the VH1 reality series Mob Wives, accused the companies of unlawfully using her image and life story for one of the game’s characters.
That case is still pending, with Rockstar arguing the suit should be dismissed since creative works of fiction and satire, like GTA V, are shielded against such claims. That argument would theoretically apply to the Lohan case as well.
Grand Theft Auto V set an entertainment industry record by earning $1 billion a mere three days after its retail release last year.