Lohan has been telling friends she called Mitchell, 28, a “gypsy” after she noticed Mitchell’s friends crowding around her expensive Celine purse at a table in the exclusive hotspot Avenue, TMZ.com reports.
After the troubled starlet retrieved the handbag and returned to her own table, members of her entourage told her Mitchell’s friends had pilfered her purse.
That’s when Lohan flew off the handle and called the psychic a “gypsy” — but she still insists she didn’t punch the blond beauty.
Mitchell has hired publicity-hound lawyer Gloria Allred to represent her in the legal battle that’s sure to follow the alleged fracas at 3:45 a.m. Thursday. Their psycho connection is said to have occurred when Lohan allegedly landed a vicious sucker punch on Mitchell’s face.