According to TMZ, the former One Direction bandmate was embroiled in the shooting chaos when an unidentified male attempted to gain access to the venue by using a fake ID.
When the man in question was turned away by security, a scuffle ensued before shots were fired into the air in protest.
TMZ added that clubgoers were visibly shaken after the noise of gunfire filled the high-profile location.
One witness tweeted, "Shooting @ the peppermint club. I'm f*ing shaking right now."
While another added, “Shooting at peppermint... I'm shook. scariest moment of my life and the 10 ppl who were on the patio with me. #whatisgoingonintheworld”
The gunman fled the scene before law enforcement could arrive however, multiple shell casings have been collected by police for further examination.
Liam, who is expecting his first child with girlfriend Cheryl Fernandez Versini, is said to have vacated the club safely, half-an-hour after gunfire rang throughout the trendy suburb of West Hollywood.
The English singer, dancer, and television personality debuted her much-speculated baby bump in November last year. She was spotted stepping out with boyfriend Liam in London, with an unmistakable and rather gorgeous pregnant belly on display.
While it had been rumoured for months that the former Girls Aloud songstress was expecting her first child with the One Direction crooner, this was the first time that her baby bump had been undeniably visible.
The 33-year-old was all smiles as she attended a charity concert with Liam, wearing a tight sweater dress that clung to her bump.
Cheryl’s former band member Kimberley Walsh fuelled pregnancy rumours surrounding the couple when she made headlines saying that Cheryl would be “a brilliant mum”.
Speaking to newspaper The Sunday People, Kimberley – who just gave birth to her second child with husband Justin Scott - revealed that Cheryl is “naturally good” with kids.
“She’s really happy right now. And she’ll be a brilliant mum. She has loads of nieces and nephews, so she’s used to the madness of children.”
“Both she and Nicola [Roberts, also from Girls Aloud] are naturally good with kids,” she gushed.
The stunning couple have been dating for just over a year.
The duo first met in 2008, when Liam was 14 years and old and Cheryl was 24, when he auditioned for The X Factor UK. He would later return in 2010, where he was grouped with Zayn Malik, Harry Styles, Louis Tomlinson and Niall Horan to form the boyband One Direction.