Los Angeles: Troubled star Lindsay Lohan is threatening to take legal action against a party planning company over allegations her name has been used to promote a New Year's Eve bash in Dubai.

Lohan's representatives are to send a cease and desist letter to the unnamed firm to clear up false reports suggesting she will ring in 2012 at a massive party on a cruise ship in the United Arab Emirates, she reported.

The actress' spokesman Steve Honig also said the story is untrue as Lohan plans to ring in the New Year in California.

"Lindsay is not going to Dubai, nor had she ever considered doing so. She will be spending New Year's Eve in Los Angeles with a few close friends and family," said Honig.