David Letterman has no problem addressing controversy, and last night on his show, he proved that by offering an apology to Lindsay Lohan's family. To his Late Show audience, Letterman said sarcastically:

    "I hope I didn't embarrass you, Lindsay, or your family."


Lilo's dad, Michael, had arranged for his daughter to read Letterman's Top Ten list, however Late Show producers said the whole ordeal was set up without authorization.

However, Michael claims Lilo's Letterman spot was, in fact, run by Lindsay ... and she agreed to it. Papa Lohan told X17online exclusively:

    "They are liars. I set this up entirely with Lindsay's permission. It went through Lindsay and she really wanted to do it. It was all set, but at the last minute, Lou Taylor and Leslie Sloane canceled her appearance."


When talking about the fiasco, Letterman blamed himself for jumping the gun and for having his staff send out a press release about Lindsay's appearance on the show.

Way to have a heart, Dave!