Lindsay Lohan has suffered an initial loss in her  leggings lawsuit. You may recall that the starlet and her 6126 business partner, Kristi Kaylor, filed a $1.1 million lawsuit in a Los Angeles federal court in 2012 against D.N.A.M. APPAREL INDUSTRIES, the company responsible for manufacturing her 6126 line. According to Lohan’s complaint, D.N.A.M.  infringed her trademarks, failed to pay her over $500,000 in royalties and other sums due to her in connection with the collection, and  knowingly made false representations of significant facts, with the intent to deceive and induce Lohan to enter into the agreement. To this, D.N.A.M. countersued, with a $5 million breach of contract claim, alleging that LiLo’s hard-partying image devalued the brand.

Well, as of this past week, the presiding judge dismissed Lohan’s claim of fraud. This ruling follows a hearing, in which 6126 managing partner Kristi Kaylor, gave a declaration insisting that Lohan was dragged down by D.N.A.M.’s shady business practices and not her troubled personal life: “Lindsay’s personal issues had nothing to do with the loss of business. Prior to the license agreement being signed, Lindsay had two well-documented arrests and stays in rehab and the 6126 line flourished. The first year of the license agreement with DNAM the line did 2.3 million sales. It was [D.N.A.M.’s] production problems and accepting bank wires for international orders and never shipping the goods nor returning the money that plagued the line.”

Despite the dismissal of Lohan’s fraud claim, two claims remain against D.N.A.M.: Trademark infringement and failure to pay royalties. The case is slated to return to court on May 1 in Los Angeles.