However, Lindsay's father Michael Lohan has sprung to the defence of the troubled actress, claiming she did not steal the piece of jewellery.
He told RadarOnline.com: "This has been a very stressful time, none of us need this added stress to our lives. I'm not going to let people continue to distort things: Lindsay never stole a necklace."
While Los Angeles Police Department detectives initially obtained a warrant to search 'Machete' star's Venice Beach home, police intervention was avoided by a friend of Lindsay's turning the necklace in.
The 'Mean Girls' actress was released from a three-month court-ordered rehab stay in early January - her fifth visit to a treatment facility - and is currently on probation relating to a 2007 conviction for driving under the influence (DUI) until a court hearing on February 24.