Lindsay Lohan: 'Not guilty' to $2,500 theft

Lindsay Lohan has pleaded not guilty to a charge of stealing a $2,500 (£1,500) necklace from a Los Angeles jewellery store.

In a brief court appearance, where the 24-year-old was wearing a skin-tight white dress, black heels and sunglasses, a judge warned the actress that she needed to adhere to the law while her case was pending or she might possibly be jailed without bail.

If convicted, Lindsay, also known as Lilo, could be sent to prison for up to three years.

The Mean Girls star, who is still on probation for a 2007 drunk driving and cocaine possession offence, is accused of walking out an LA jewellery store without paying for the gold necklace in January.

The alledged incident occured just three weeks after Lilo had completed her fifth stint in alcohol and drug rehab in three years.

Friends have said Lindsay believed the necklace, which has been returned to police, was on loan.

The former child star, who was once considered one of the industry's most talented young actresses, is also currently under investigation for allegedly attacking a Betty Ford employee during her spell in rehab earlier this year.