The troubled actress was alleged to have lashed out at Dawn Holland, a member of staff at the Betty Ford Center - where she was being treated for drug abuse as part of a court-ordered rehabilitation programme - last December but the Riverside County, California, district attorney has now decided not to pursue the claims.
Prosecutor`s spokesman John Hall told CNN: "Our office has completed review of the case, and we will not file charges due to insufficient evidence."
Ms Holland later decided not to press charges and Lindsay`s father Michael urged his daughter to file her own counter claim, alleging she was biased against Lindsay "since day one".
He said: "The woman who claims she was attacked in the house had it out for Lindsay since day one. She didn`t want her to drive and didn`t want to give her any passes to go out. This lady tried to do everything she could to not allow Lindsay to do the things she`s entitled to."
However, the `Mean Girls` star`s legal troubles continue as she faces a charge of felony grand theft after being accused of stealing a $2,500 necklace from an upmarket Californian jewellers.
The 24-year-old actress rejected a plea deal in the case on 23.03.11 in exchange for a reduced sentence and now must face trial.