The "Mean Girls" star accused of walking out with a gold necklace could go to California State Prison for up to three years if found guilty.
She has already spent three brief stints in jail in the last three years.
The 24-year-old recently rehabbed starlet is on probation in a 2007 misdemeanor DUI case which requires her to obey all laws and submit to random drug and alcohol testing.
A probation violation alone could leave her with six months in the county slammer.
Representatives for Lohan have not returned requests for comment, but her lawyers have denied allegations that she stole the necklace.
They said: "We vehemently deny these allegations and, if charges are filed, we will fight them in court, not in the press."
The star was linked to the disappearance of a gold necklace with semi-precious stones from the Kamofie & Co. jewelry store.
Law enforcement sources told the Los Angeles Times that surveillance video shows Lohan wearing the necklace following the actress' visit to the store.
The lawsuits are racking up for the troubled star as she is also sued by a tanning company for over $41,000 in allegedly unpaid bills.