The actress is suing Sky Las Vegas, who is using her name in an ad.
Last year, the actress was being photographed on the red carpet at a Hollywood event, when a strap of her dress broke, and exposed one of her breasts. Reid says she was unaware that she was flashing the cameras as they were "flashing" her.
Sky Las Vegas has created an ad that appears to be a reference to this incident. The ad for the condominium development reads, "Dear Tara Reid. Come let it all hang out."
The amount of the lawsuit is not yet known.