Lindsay Lohan formally charged with grand theft

Lindsay Lohan was formally charged with grand theft Wednesday for allegedly stealing a necklace worth $2,500.

The 24-year-old actress is scheduled to appear in court later in the day for an arraignment on the single felony count. The actress could face up to three years in prison if convicted.

Lohan's lawyer said that the actress denies the allegations and will fight them in court.

Late last month Kamofie & Co. a boutique jewelry store in Venice, California reported the custom necklace stolen. Lohan, whose apartment is located close to the jewelry store, claims that the necklace was given to her on loan. The store maintains that it was stolen after photos of the 24-year-old actress wearing the necklace surfaced.

Officials knocked on LiLo's apartment last week, equipped with a search warrant, but the necklace was returned by one of Lohan's associates before police could conduct the search.

Lohan's lawyer has said that the actress denies the allegations and will fight them in court.