Probation revoked, warrant issued for Lindsay Lohan

Lindsay Lohan's probation has been revoked and a bench warrant was issued for her arrest Monday after the troubled actress acknowledged she failed a drug test. The warrant will be held until Friday morning when Lohan is scheduled to appear at Los Angeles Superior Court in Beverly Hills.

On Aug. 24, upon Lohan's release from an inpatient substance-abuse program after 23 days, Judge Elden S. Fox imposed several conditions on her. They included twice-weekly random drug and alcohol testing and behavioral therapy sessions, 12-step chemical dependency sessions five times weekly; and other conditions of continued probation following her guilty plea in a 2007 DUI conviction.

Any positive drug tests would result in a 30-day jail sentence. Lohan's probation had been scheduled to end Nov. 1. TMZ reported that the actress actually failed two drug tests - one indicating she had used cocaine and the other amphetamines.

In better news for the beleaguered starlet, a settlement was reached Monday in Lohan's $100 million lawsuit against E-Trade for its pejorative use of a "milkaholic" baby named Lindsay in a TV commercial.

"I'm very pleased that the case has settled," her mother and manager Dina Lohan, 48, told Newsday. Said family attorney Stephanie Ovadia, "All I'm allowed to say is that it was settled. I can't talk about anything else."

The news couldn't have come at a better time: A "well-placed source" told RadarOnline.com Monday that Lohan's finances are in dire straits.

"Lindsay is in serious trouble financially," the source said. "Dina is struggling to make ends meet and pay Lindsay's lawyers and this latest development doesn't help things. Everyone thinks the Lohan family is so well-off, but if they knew the truth, it would be shocking."

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