The celebrity news website said Lohan wants financial damages from Rockstar Games.
The video game includes a woman resembling Lohan on the cover.
Two episodes in the game also feature women who seem a lot like Lohan. In one, a woman asks a player to help her evade paparazzi and in another, set at a hotel that looks like the Chateau Marmont in West Hollywood, where Lohan once lived, the goal is to photograph a woman having sex.
Lohan, 27, who became a child star at the age of 12 in a Disney remake of "The parent Trap," has become as famous for her personal problems as her career.
Boston schools pull out free condoms over wrapping complaints
Millions of Getty images now available for free via embed tool