Lindsay Lohan Pleads Not Guilty; Judge Tells Her 'Don't Push Your Luck'

Actress Lindsay Lohan, center, arrives at the LAX Airport Courthouse in Los Angeles, Wednesday, Feb. 9, 2011, to be arraigned on a felony grand theft charge that prosecutors say they will file over a $2,500 necklace reported stolen by an upscale jewelry store. (AP Photo/Jae C. Hong)

Did Lindsay Lohan think she was going to court, or to a fashion show?

Lohan appeared in a Los Angeles court Wednesday in a tight-fitting, high-necked white dress to answer to felony grand theft charges.

Lohan pled not guilty to stealing a necklace worth $2,500 from a Venice, Calif., store.

Bail was set at $40,000 and the court set a date for February 23 for an initial hearing.

Prosecutor Danette Meyers also wanted Lohan's probation for previous parole violations to be revoked. The judge agreed, and remanded a hearing on that to the same date.

"You're in a different situation now that a felony has been filed against you," Judge Keith Schwartz told Lohan. "You now have a pending felony case. While this case is percolating, if you violate the law, I will remand you and set no bail."

"You need to follow the laws just like everybody else. Look around the room. You are no different than anyone else," he said. "So please, don't push you luck."

Lohan spoke little during the hearing except to acknowledge her name and that she understood the charge and the possible consequences.

VOTE: Lindsay's courtroom outfit too sexy?

The prosecutor also asked Judge Schwartz to tell Lohan to suspend any contact with the owners of the store that claimed Lohan stole the necklace.

Lohan's lawyer Shawn Chapman-Holley said the "Mean Girls" star was entering an early disposition program where she could work out a deal to keep the case from going to trial.

She said Lohan has received good reports from her probation officer and has not failed any drug screens.

Meyers rejected the idea that Lohan has been well-behaved.

"Well, a good probationer doesn't pick up a new case," Meyers said.

Police began investigating Lohan after a store in Venice reported a necklace missing on Jan. 22.

Lohan was photographed wearing the necklace in question. The D.A. also has a surveillance video which shows Lohan walking out of a Venice, Calif., jewelry store with the necklace in question, TMZ reports.

Lohan's assistant returned the necklace after the investigation had begun, but it was too late.

The L.A. County D.A. believes Lohan is a seasoned fashion thief, a primary reason why she's being prosecuted for felony grand theft, TMZ reports.

Sources connected to the case told TMZ that in deciding whether to prosecute, the D.A.'s office considered three incidents in which Lohan allegedly stole expensive items:

-- She was suspected of taking a $400,000 necklace in 2009 from an Elle Magazine photo shoot.

-- She was accused of stealing a $12,000 mink coat in 2008 from an NYC nightclub.

-- She was accused of taking a $35,000 Rolex from a "friend" in 2010.

Lohan was not prosecuted or convicted in any of the cases, but sources tell TMZ that prosecutors not only heavily considered the prior incidents in making their decision, but they will ask the judge to admit the three incidents into evidence to show "prior bad acts" if the case goes to trial.

The former Disney star was sentenced to rehab twice and jail twice last year.

The judge will determine if Lohan violated the terms of her probation, which required her to obey all laws and submit to random drug and alcohol testing.

The jewelry case is not Lohan's only concern.

Prosecutors in Riverside County are considering whether to charge the actress with battery for an altercation with a rehab worker at the Betty Ford Center in December.

The worker was fired after giving an on-camera interview to celebrity website TMZ, but district attorney's spokesman John Hall has said the allegation against Lohan was under review.

The threat of incarceration has hung over Lohan since May, when a judge handling her DUI case determined she violated her probation by missing weekly alcohol education classes.

Her three stints in jail in the past three years have all been shortened by overcrowding and the fact that she could not be held without bail on a misdemeanor.

The Associated Press contributed to this report.