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During the Superbowl in January, E*Trade launched a commercial featuring talking babies. A “milkaholic” baby named Lindsay turned out to be one of the most popular ads aired during the 2010 mega sporting event.

Shortly after the release of the commercial, Lindsay Lohan‘s legal team argued that because she has the same first name recognition as Madonna or Britney, the advertisement violated her rights. Lilo proceeded with a defamation lawsuit against E*Trade to the tune of $100 million.

Rather than take their chances in court, E*Trade has decided to settle. Lindsay’s attorney Stephanie Ovadia told our friends at TMZ: “The case between Lindsay and E*Trade has been settled … there is no further comment.”

Though the terms of the settlement have not been disclosed, sources say that Lindsay is happy with the outcome and will walk away with a significant payday. Dina Lohan told reporters: “The family is pleased that the case has been settled.”

Reps for E*Trade continue to maintain that the lawsuit was always without merit and they are pleased to have the matter behind them.

Lohan, who has reportedly been in dire need of money, snagged the lead role in the biopic Inferno, slated to begin filming in November. Lilo has signed on to portray the infamous Deep Throat porn star Linda Lovelace.

Lindsay failed a drug test last week and will be heading back to the slammer on Friday, when she appears before Judge Eldon Fox. He has already drawn up a bench warrant for her arrest. It is expected to be executed immediately upon her arrival in court at the end of the week.

Check out the milkaholic ad below: