Lindsay Lohan pleads not guilty in theft of necklace

Judge Keith Schwartz set $40,000 (£25,000) bail and gave Ms Lohan a stern warning

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Troubled Hollywood actress Lindsay Lohan has pleaded not guilty to a felony count of stealing a necklace from a California jewellery store.

Prosecutors said she took the jewellery, worth more than $2,500 (£1,551), last month soon after she was released from court-ordered rehab.

Her lawyer denied the claim. If guilty, she faces up to three years in prison.

Ms Lohan, 24, has served short stints in jail on drink-driving charges and for violating probation conditions.

Judge Keith Schwartz set $40,000 bail, saying it appeared the Mean Girls star had violated probation on a 2007 drink driving conviction.

"Look around this room," he told Ms Lohan. "Everybody else has to follow the law. You're no different than anyone else. So please, don't push your luck."

Police and prosecutors allege that Ms Lohan took the necklace from a store in Venice, California, on 22 January. She is charged with felony grand theft.

Ms Lohan arrived at court in Los Angeles in a short white dress and sunglasses, and was greeted by a swarm of news photographers.

In December, a worker at a Betty Ford Center in California accused her of assault.

The worker was fired after giving a video interview to a celebrity news website, but prosecutors have said the accusation remains under investigation.

Ms Lohan was released from the clinic last month. She had been committed to the rehab programme in October after failing a court-ordered drug test.

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