"We vehemently deny these allegations and, if charges are filed, we will fight them in court, not in the press," Shawn Chapman Holley, Lohan's attorney, said in an e-mail to ABC News.
According to a report on TMZ, Lohan could face felony charges as early as today for allegedly stealing a gold necklace from Venice, Calif., jewelry store, Kamofie & Co.
Both Lohan's attorney and the Los Angeles County District Attorney's office have denied that charges are pending.
"I don't know where TMZ is getting their information," Los Angeles County District Attorney's Office spokeswoman Sandi Gibbons told the Beverly Hills Courier. "We have our investigation under review and a filing decision has not been made."
The "Mean Girls" star reportedly said that the gold necklace with semi-precious stones was loaned to her by the store and her assistant returned it to police.
Staff from the jewelry store reported the necklace missing Jan. 22, just three weeks after the 24-year-old actress left the Betty Ford Center.
"We're just letting the police do what they need to do and we're here to support whatever they ask us to do," Jeff Kaman, husband of Sofie Kaman, the owner of the jewelry store, said.
Last week, Los Angeles police launched an investigation into the missing gold necklace and obtained a warrant to search Lohan's home. A friend of Lohan's brought the necklace to the Pacific Division police station before police could execute the search warrant.
Law enforcement sources told the Los Angeles Times that surveillance video shows Lohan wearing the necklace.
"She could go to prison, worst case scenario for her, for three years, if she's convicted of this," Harvey Levin from TMZ.com said.
It's not the first time the starlet has been connected with missing gems.
In 2009, British police investigated the disappearance of $400,000 worth of Dior jewels from a photo shoot Lohan did with Britain's Elle magazine. At the time, Elle released a statement exonerating Lohan, saying, "Elle has no reason to believe that Lindsay Lohan was in any way responsible."
She's also been the victim of theft. Lohan was one of many celebrities whose homes were looted by the Hollywood "Bling Ring" in 2008 and 2009.
If Lohan ends up on the wrong side of the law this time around, the consequences could be dire.
L.A. Superior Court Judge Elden S. Fox spared Lohan jail time in October after she tested positive for drugs and violated her 2007 DUI probation. But he warned Lohan that she'd go to jail for six months if she broke any laws and violated her probation again.
She has been to jail three times in connection with the 2007 case.
Lohan is scheduled to appear in court for a probation hearing Feb. 25.
ABC News' Sheila Marikar and Ryan Creed contributed to this report. The Associated Press contributed to this report.