Lindsay Lohan is being sued over her legging line. Clothing manufacturer D.N.A.M. Apparel Industries sued Lindsay for $5 million, who claim Lohan's soiled reputation and "drug-addled image" is the reason a business deal for her 6126 legging line fell apart. Lindsay initially sued them, but now she is being counter-sued, and for much more.

Lohan had originally started legal action against the company, claiming they didn't honor a licensing fee agreement and was seeking $1.1 million in damages. Her own lawsuit has backfired and now D.N.A.M. Apparel Industries is suing her for five times more than Lindsay's original claim...all over stretchy leggings.

D.N.A.M. claims it invested millions in the 6126 brand only to find it unprofitable. They are suing for breach of contract and fraud. The company claims that Lohan's legal troubles and her supposed drug and alcohol addictions devalued the brand, and it its seeking $5 million in damages. 

In a $5 million breach-of-contract counter claim filed against Lindsay Lohan Friday in a California U.S. District Court, clothing company DNAM alleges that while the starlet's leggings line initially enjoyed some success at department stores in 2010, buyers eventually began to pull back "because they did not want to be associated with Lohan's drug addled image."

Her poor media status affected their own reputation, and her legal problems were playing out "like a Greek tragedy." How humiliating for Lohan! Can you imagine being sued because your character is worth $5 million worth of damages?

The complaint states that in the spring of 2011, buyers canceled appointments and customers canceled orders, noting that "no one would touch the line." Lohan, who was in rehab at the time, was unable to endorse the brand or provide feedback, the lawsuit alleges.

Lindsay's attorney, Perry C. Wander disproves the claim saying "The license agreement does not have a morals clause that allows the company to suspend payment for any behavior.  The contract is not in LL name thus she cannot be held personally liable. The cross claim is therefore frivolous and totally without merit and will be defended vigorously."

Kristi Kaylor, Lohan's business partner on 6126, also refutes the allegations, claiming that it was DNAM that breached their licensing agreement.

"The DNAM countersuit against 6126 is frivolous and misrepresents the facts," Kaylor says. "DNAM knows that it is in breach of the 6126 licensee agreement, and this suit is clearly nothing more than a transparent defense maneuver. Lindsay and I worked for over three years to build the 6126 brand and ensure its success; DNAM is merely trying to get out of honoring its financial obligations."

Lilo is currently at The Betty Fold Clinic for a judge ordered, mandatory 90 day stay in rehab. This is Lindsay Lohan's 6^th stint in rehab and reports claim that she isn't taking it seriously once again. Denying her addictions, smoking cigarettes, and sneaking Adderall on the premises are all part of Lindsay's nonchalant attitude.

But with this embarrassing legal claim against her, maybe she will want to improve her image.  Or maybe this humiliating law suit will send the depressed star spiraling further out of control.  What do you think?