Dawn Holland, who told TMZ earlier this week how Lindsay ripped a phone from her hand causing a severe sprain, now says Lindsay should not be prosecuted.
Holland's lawyer, Keith Davidson, tells TMZ, "Dawn will not continue to press charges against Lindsay, nor will she be assisting any further in the investigation or prosecution."
And this is interesting ... we asked Davidson how his client would respond if she's subpoenaed, and he said, "She won't."
Davidson says Holland and Lindsay share a common bond -- they're both recovering addicts, Holland does not want "in any way shape or form to do anything that would violated Lindsay's probation or cause an arrest."
Davidson says, "A crime has quite simply not been committed by Ms. Lohan."
I asked Santa for the truth and here it is! Dancing for joy right now!