The film is about Andy Warhol muse Edie Sedgwick's ascent to superstardom, decline into drug use and untimely death at the age of 28.
"I think he was concerned that the Bob Dylan character was portrayed as contributing to Edie's suicide, which isn't the case at all. I think the character is very sympathetic to Edie," Hickenlooper said in New York Tuesday.
"It was all exaggerated within the press. There was no lawsuit filed," Miller remarked, prompting Hickenlooper to admit, "Legal letters were served, but no lawsuit was filed."
"It's absolutely all fine now," added Miller, the actress who plays Sedgwick. "And ('Factory Girl' producer) Harvey (Weinstein) is, in fact, producing the new Bob Dylan bio-pic with Cate Blanchett and Heath Ledger, so there is no bad blood, which is good."