The 25-year-old actress had hijacked their car and taken them on a chase through Santa Monica, after she took off from a party, which resulted in her second infamous DUI arrest.
Attorneys for both sides confirm the lawsuit was settled and a dismissal notice will be filed in court soon. The terms of the settlement have not been disclosed, reported TMZ.
The three men sued the "Mean Girls" in 2008, claiming an intoxicated Lohan hijacked a car in which they were passengers following a party in Malibu.
According to the suit, Lohan then began an insane ride down the PCH "endangering all of their lives."
The suit claimed Lohan blew through red lights, eventually ending up at the Santa Monica Police Department where she was arrested for DUI, her second DUI bust in less than 90 days. Cops said they also found cocaine.
Lohan pled guilty to being under the influence of cocaine and no contest to reckless driving and driving with a blood alcohol level of .08 or higher. She eventually served one day in jail.