The lawsuit revolved around the accusations that Rockstar used Lohan's likeness in Grand Theft Auto V as well as its marketing materials without her permission. The case has been thrown out entirely on the grounds that, essentially, there isn't a law about parodying people in a video game.
An appeals court in Manhattan ruled on the case on Tuesday, stating that Grand Theft Auto V does not fall under the statutory definitions of 'advertising' or 'trade'," explaining that "This video game's unique story, characters, dialogue, and environment, combined with the player's ability to choose how to proceed in the game, render it a work of fiction and satire."
Lohan is rumored to have been embroiled in the court battle since 2013, though the case gained popularity in 2014 when she finally went through with filing her suit.
The character in question, Lacey Jonas, is a bit of a vapid and overly vain character who appears in a red bikini in several of the marketing materials for Grand Theft Auto V, throwing up a peace sign and being frisked in various images promoting the game. Lohan has long since claimed the character depicts her, but it's difficult to see the similarities.
Previously a judge had ruled back in March of this year that the lawsuit wouldn't, in fact, be dismissed. Much has changed since then, as the case has been riddled with back-and-forth appeals and arguments since it made the scene. It's possible this isn't even the end of Lohan's case, as she could come back with an argument all her own in the future.