The Mean Girls actress is seeking $100 million (£66.7 million) in damages and compensation over the commercial for financial firm E-Trade, which depicts a baby girl called Lindsay as a boyfriend stealer and a "milkaholic", reports the New York Post.
The commercial shows a baby boy playing the stock market and apologising to his girlfriend for not calling her the night before.
The baby girl then gets suspicious about a rival female baby, referring to her as "that milkaholic Lindsay".
Lohan filed a lawsuit on Monday (08Mar10) at Nassau County Supreme Court over the advert, which debuted on U.S. TV during the Super Bowl last month (Feb10).
The actress' lawyer, Stephanie Ovadia, claims Lohan's first name is just as recognisable as other single-word monikers, used by stars such as Madonna and Cher.
Ovadia says, "Many celebrities are known by one name only, and E-Trade is using that knowledge to profit. They used the name Lindsay. They're using her name as a parody of her life. Why didn't they use the name Susan? This is a subliminal message. Everybody's talking about it and saying it's Lindsay Lohan."
The lawyer alleges company bosses used Lohan's "name and characterisation" without paying her or asking for her approval, thus violating her rights. Ovadia also insists the company has earned large profits from the promo because it would have been seen by millions of TV viewers watching the Super Bowl.
But chiefs at the advertising firm which created the commercial for E-Trade are dismissing the claims, insisting they chose the name Lindsay at random.
Chris Brown, a spokesperson for the Grey Group, says they "just used a popular baby name that happened to be the name of someone on the account team."
Lohan is seeking $50 million (£33 million) in exemplary damages, as well as $50 million (£33 million) in compensation.