The video game was released in mid-September, on multiple platforms.
There aren't any details yet, and the report should be assumed to be a rumor, for now. However, TMZ is usually pretty accurate.
For now, the reason behind any proposed legal action is pure speculation. However, TMZ believes that Lohan may be upset about a pair of paparazzi missions in the game. One of the missions features a supposed Lohan lookalike who attempts to avoid the paparazzi; the second asks the player to filming a sex tape at a hotel that resembles the Chateau Marmont.
Game footage showing the offensive (to Lohan) imagery is available, embedded.
Those familiar with Lohan's antics will recall that not only does the actress frequent the hotel, she once lived there.
There is speculation that the blond woman on the game's cover (above) could be an image of Lohan. However, Kotaku has claimed that the model for the image is model Shelby Welinder.
Naturally, just because Lohan sought the advice of her attorneys doesn't necessarily mean that the actress (again, loosely used) will take the case to court. We have seen that the caseload of a Lohan lawyer is generally full of other, more pressing issues, such as actual criminal cases.
Grand Theft Auto V raked in a $1 billion in sales in its first three days on the market. That made the game the (at least for now) fastest selling video game of all time, and giving Take-Two Interactive, the parent company of Rockstar Games, another major hit.