The 28-year-old 'Mean Girls' star filed suit against Take-Two Interactive, the developers behind the popular game, last month, claiming they used her image without permission to create the fictional Lacey Jonas, reported New York Post online.
Lohan also alleged that gamemakers based the character on her own life, but Take-Two bosses have now fired back at the actress' claims and asked a judge at a court in New York City to dismiss the case.
"This allegation underscores the thinness of Ms Lohan's claims: Gtav is a parody of Los Angeles, so it is unsurprising that it features similar buildings. The complaint is a bad-faith filing and abuse of the court system and should be dismissed."
Grand Theft Auto V was released last September and proved popular with video games fans, scoring worldwide sales of more than USD 800 million on its first day.