Lindsay Lohan pleaded not guilty to felony grand theft of a $2,500 necklace - a case that could return the troubled starlet to jail rather than the big screen.
She entered the plea Wednesday through her attorney.
Superior Court Judge Keith Schwartz set bail at $40,000. He says it appears Lohan violated her probation and told her not to push her luck by getting into any more trouble.
The "Mean Girls" star was met by a swarm of photographers when she arrived at the courthouse for her arraignment in a white dress and sunglasses.
Prosecutors claim the 24-year-old starlet took the necklace in January while on probation for a 2007 drunken driving case.
If convicted of the theft charge, Lohan could face up to three years in state prison.
Prosecutors in Los Angeles plan to charge actress Lindsay Lohan Wednesday with felony grand theft.
The charge arises after a $2,500 necklace was reported stolen from a jewelry store last month.
Police disclosed last week that Lohan was under investigation for allegedly taking the necklace from the store, located in the Venice district of LA. The necklace was turned in to police before they could search Lohan's home for it.
The 24-year-old is due in court for a Wednesday afternoon arraignment. Lohan's attorney has denied any wrongdoing by his client.
Lohan is already on probation for a 2007 drunken driving case. The new felony case would represent the most serious charge the actress has faced, and could send her back to jail.