I'm posting this here in case anybody else needs it in the future.
I basically used the mail_send hook to check the subject. If it matches the one for the lost password recovery, I display an error message.
It might not be the best way to do it, but it works.
PHP Code:
if( $fromemail == $vbulletin->options['webmasteremail'] )
{
foreach ($vbulletin->languagecache as $language)
{
eval('$' . 'lostsubject = "' . fetch_phrase('lostpw', 'emailsubject', 'emailsubject_', true, true, $language['languageid'], false) . '";' );
if( $subject == $lostsubject )
{
eval(standard_error(fetch_error('password_update_disabled')));
}
}
}