The erotic thriller has been denied a screening slot because it suffers from "quality issues" and has "an ugliness and a deadness to it", a SXSW source tells The Hollywood Reporter.
The snub comes just a week after bosses of the Sundance Film Festival opted not to feature The Canyons during the 10-day independent cinema event in Utah.
Director Paul Schrader's movie, which features Lohan opposite porn star James Deen, was written by American Psycho author Bret Easton Ellis.
