The actress appeared in court today for a hearing on a felony grand theft charge alleging that she stole the necklace from a Los Angeles jewellery shop last month.
The 24-year-old former Mean Girls star, who is currently free on $40,000 bail, was charged on 9 February with grand theft for allegedly stealing the necklace from Kamofie & Company on 22 January.
Lohan arrived at the Los Angeles Airport Branch Courthouse just before the 8.30am hearing today, wearing a low-cut black sweater, white trousers and sunglasses, and with her hair scraped back in a ponytail.
Her lawyer Shawn Holley and prosecutor Danette Meyers discussed a possible plea bargain for about 30 minutes in the judge’s chambers before Los Angeles Superior Court Judge Keith L Schwartz addressed Lohan.
She now has until 10 March to decide whether to plead guilty or not contest, or go to trial and possibly face a more severe sentencing.
Judge Schwartz told her: “Miss Lohan, there are a couple of things you need to understand, so there is absolutely no misunderstanding…
“I never met you before the last court appearance, you never met me. One of the things about me is that I treat everyone the same. I don't care you are Lindsay Lohan versus John Doe or Jane Doe.”
He added: “This case does involve jail time. Period. If this case is resolved in front of me – you are going to jail. Period. Now there may be an issue as to the amount of time that you go to [jail] and that's why a judge has discretion in sentencing. But if it settles here… you will be going to jail.”
If convicted, Lohan could face up to three years in a state prison, according to the District Attorney's Office.