A spokesperson for the Palm Desert Police Department confirms that Dawn Holland's decision not to press charges will not stop them from continuing to look into the incident.
"We are continuing our investigation," the spokeswoman tells E!. "We hope to be done sometime in January."
Holland's lawyer, Kevin Davidson, says his client does not want to pursue a case against Lindsay. "Dawn will not continue to press charges against Lindsay, nor will she be assisting any further in the investigation or prosecution," he says.
When asked if the investigation would be halted because of Dawn's refusal to participate, the spokeswoman told us, "I don't believe that is the case."
Holland had originally accused Lohan of misdemeanor battery following a heated argument on Dec. 12. Soon after, she was fired from Betty Ford for speaking to the media about the incident.