The actress was canned from "The Other Side" before production even began, celebrity website TNZ reports, as the film's financial backers worried she's no longer "bankable" at the box office - that is - guaranteed to draw people into theaters.
But "Insider" anchor Lara Spencer reported on "The Early Show" Tuesday that Lohan's problems apparently go beyond that.
Spencer spoke with Lisa Bloom, who happens to be a CBS News legal analyst, and who's been hired by Lohan's father, Michael Bloom.
His biggest fear, Bloom says, is that Lindsay's addiction will kill her. As Bloom put it, he doesn't want his daughter to become another Hollywood statistic - another star to meet an early death after battling an addiction.
Sources tell Spencer that, when some close friends last saw Lindsay, she was taking prescription pills every 20 minutes, and that she's "in complete denial," as Spencer put it, about her problems.
Lindsay and her mother, Dina Lohan, continue to insist there are no problems and that Lindsay is fine, Spencer says, but Lindsay's reported $600,000 credit card debt and embarrassing rants on Twitter suggest a different reality.
Radio host and former child star Danny Bonaduce, himself a recovering addict, on "The Early Show" Tuesday, suggesting rehab is futile and a stint in jail may be the only way she can kick her apparent addiction:
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But Michael, who has himself spent time in jail, and is now six years clean and sober, insists his daughter needs help to get back on track, says Spencer. He has given her an ultimatum -- either she gets clean -- or he's willing to take legal action to try and get her affairs under control and stop her public downward spiral.
Spencer says Michael now feels that, if tough love is the only way to make it happen, then so be it. He claims he's desperate and would never forgive himself if something happens to her.
Lindsay first burst on the scene at age 11, with her role in the Disney remake, "The Parent Trap." Her first hit movies established her as a rising star. "Freaky Friday" and "Mean Girls" brought her critical acclaim and made Lindsay a studio darling.
"She had that special gift," observes Michael Levine of Levine Communications, "magnificent potential, extraordinary talent, kind of a timeless quality that had a really almost unlimited potential."
A potential she showed in the 2006 movie, "A Prairie Home Companion," when co-star Meryl Streep marveled that Lohan was "in command of the art form."
But, Spencer points out, with the sudden launch to celebrity came pitfalls in Lindsay's personal life, as cameras seemed to capture her every misstep. Red carpet glamour shots gave way to mug shots and at least four visits to rehab centers in just two years.
"Her apparent urge to self-destruct exceeded her urge to succeed," Levine says.
Her recent "comeback" films have gone nowhere, Spencer notes, culminating with the reported firing from "The Other Side."
Industry insiders say, until Lindsay can show she's sober and reliable, she won't be able to find work.
On The Early Show" in Noevmber, Michael Lohan said, "Is she the Lindsay from 'Parent Trap' and 'Mean Girls' and 'Freaky Friday'? No. Do I think she can get it back? Absolutely."