Troubled actress Lindsay Lohan has pleaded not guilty to charges of felony grand theft for her alleged stealing of a necklace worth $2,500.

It is reported that Lohan tried on a number of pieces of jewelry in a store in Los Angeles and then left the shop still wearing one of the necklaces.

A report of the incident read that Lindsay Lohan tried on several items in the shop including “numerous rings and three different necklaces including the missing yellow diamond necklace.”

The incident occurred on January 18 and the report continues to state that “Ms Lohan gathered her things and started to leave the jewelry store without making a purchase. Ms Lohan's hair was flipped to one side covering a diamond earring.”

Lohan is then reported to laugh as a shop assistant remind her that she was still in possession of the earring before she handed it back. It was only after this incident that she allegedly left with the necklace.

Lindsay Lohan has now appeared in court about the theft and has pleaded not guilty to the charges of felony grand theft.

The star was allowed to leave after posting $40,000 bail and will now return to court on February 23 where if convicted she could face jail time of up to three and a half years.

A lawyer for Lohan said: “Ms Lohan maintains her innocence and now that I have seen the police reports I believe the case is entirely defensible. Having said that, we will entertain a discussion concerning a plea if it means no jail so that she can move forward with her recovery and her career.”

While her lawyers may be sounding confident the judge at the arraignment on Wednesday said: “Please don´t push your luck, I am telling you things will be different.”

It is only a month since Lindsay left the Betty Ford clinic after she was sent into rehab following failing a court ordered drugs test.