Dawn Holland has claimed she tried to administer the breathalyzer after Lohan, 25, returned to the rehab clinic one night in 2010 and appeared intoxicated, reported TMZ.
According to Holland, the "Mean Girls" actress recoiled in anger and twisted her wrist.
Lohan admitted to having an altercation but said she was provoked by Holland and any injuries she may have caused were in self-defense.
The two parties have come to an undisclosed financial agreement.