Ashlee Simpson's Spat With Michelle Trachtenberg A 'Misunderstanding'

Pair reportedly bickered over Simpson's husband, Pete Wentz, at 'DJ Hero' event Monday.

On Wednesday, reports emerged that at the "DJ Hero" event in Los Angeles on Monday night — at which Jay-Z and Eminem gave surprise performances — singer/ "Melrose Place" star [artist id="1241636"]Ashlee Simpson[/artist] and Michelle Trachtenberg from "Gossip Girl" got into a verbal altercation over [artist id="1235716"]Pete Wentz[/artist], who is now married to Simpson and once dated Trachtenberg.

"The evening started off very civilly," an unidentified source reportedly told Perez Hilton. "Pete and Ashlee had a pleasant conversation with Michelle and her boyfriend for close to 20 minutes. Simpson even showed Trachtenberg some baby pictures of her little boy, Bronx."

But according to the source, the good vibe quickly changed. "As the evening went on and Ashlee started to get sloppier, things got out of control."

Before long, it's reported that "[Ashlee] was staring directly at Michelle and started hurling insults at her" before she began to dance with Wentz "like a stripper." Then she reportedly went up to Trachtenberg and said, "I hope you know, the whole time you were dating Pete, I was f---ing him!" It was reported that Trachtenberg said to her, "I've never said bad things about you. I'm happy for you guys."

Simpson's publicist said the scenario has been greatly exaggerated. "It was just a misunderstanding," the publicist said in a statement. "Ashlee has since apologized to Michelle, and they remain on good terms."