LiLo was taken into custody after apparently striking a woman - now identified as Tiffany Mitchell - at the Big Apple's Club Avenue last week.
Earlier reports had linked George to the incident, with a source telling TMZ that she became jealous when the woman spoke to Max at the club.
However, Mitchell later revealed that their scrap actually occurred when LiLo allegedly called her a "f**king gypsy".
When asked about Lindsay, George told TMZ that he believes the Liz & Dick star is "fine" following the incident, adding: "She's out of trouble. She's a good girl."
Lohan also hit the headlines this week after it was claimed that the IRS have frozen her bank accounts after she failed to pay off a tax debt, thought to be for around $233,904 (£145,904).
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