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Actress Lindsay Lohan’s team denies she was fired from ‘Inferno’

News emerged this week that troubled actress Lindsay Lohan suffered another big blow — losing her highly-anticipated role in the Linda Lovelace biopic “Inferno.” However, Lohan’s camp is upset with the reports that she was axed from the film amid insurance problems, FOXNews.com reported Friday.

Director Matthew Wilder had told the Hollywood Reporter that the issue ultimately came down to “the impossibility” of insuring her, in addition to “some other issues.”

However, Ethan Terra, a close Lohan family friend and co-owner of mom Dina’s production company, told FOXNews.com: “It’s not fair in any way, shape, or form for those reports to be out there.

“Lindsay is 100 percent insurable, all she had to do was put up a fee as a bond then she would have been paid upon completion. I could insure her today. She was definitely not fired.”

Terra also said that the decision to opt out of the production, which will now star “The Proposal” actress Malin Ackerman, was actually made by Lohan and her personal posse.

“Lindsay and her team decided that a film like this would be counterproductive. When she takes on a role she really becomes the character, and right now she is surrounded by nothing but positivity, so putting her back into a negative frame of mind would be very self-destructive,” Terra continued.

“When she signed on to that role she was surrounded by negativity, and now she’s in a much stronger and more positive place.”

Lohan is currently residing at the Betty Ford rehab facility, getting treatment for substance abuse issues stemming from her stint in jail earlier in 2010 for violating the terms of her 2007 DUI probation.

For more on this story, please go to Fox News.