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Lindsay Lohan "was just freaking out" when she talked to police following her car accident this summer.
The 26-year-old star is accused of falsely telling investigators she was not driving after she totaled her rented Porsche when she rear-ended an 18-wheel truck on the Pacific Coast Highway in June.
Lindsay's assistant Gavin was also in the vehicle and received minor injuries in the crash.
When the pair were at the hospital, Lindsay was overcome with emotion.
"She doesn't remember exactly what she said to cops while being treated for injuries she sustained at the hospital," a source told Radar Online.
"There was a lot of commotion in the emergency room, and Lindsay was extremely upset and concerned for [her assistant] Gavin, who was also in the car with her. Gavin was bleeding, and Lindsay was just freaking out.
"There were cops coming at her from every angle, and her primary concern was making sure that Gavin was OK. She was also stressed-out because she had been en route to the set of Liz & Dick. Lindsay says she was very confused after the accident and would never deliberately lie to the cops."
Multiple eyewitnesses told police she was driving at the time of the crash.
Lindsay remains on probation after pleading guilty to misdemeanour theft and violation of probation for stealing a $2,500 necklace from a Los Angeles boutique in January 2011.
If convicted of false testimony, Lindsay faces up to one year in jail.
Prosecutors are preparing to file formal charges against her as early as this week.
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