LOS ANGELES – A judge has reduced Lindsay Lohan's grand theft case down to a misdemeanor after prosecutors laid out their case against the actress over a necklace reported stolen from a jewelry store.
Los Angeles Superior Court Judge Stephanie Sautner refused to dismiss the case against Lohan, but said she often sees more serious cases that get reduced to misdemeanors.
In making her ruling, the judge said, "I'm going to give her an opportunity."
The misdemeanor has a potential penalty of a year in jail.
The judge's decision came Friday after Deputy District Attorney Danette Meyers concluded her case at a theft hearing against Lohan after calling four witnesses, including two police officers who handled Lohan's case.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
Lindsay Lohan made three visits within a week to a jewelry store that accused her of stealing a $2,500 necklace but never purchased anything before leaving with the item, the shop's owner testified Friday.
Sofia Kaman told a Los Angeles judge she waited a day to report the necklace stolen because Lohan had told her she would return the next day to purchase a ring. The first time Kaman saw Lohan since the Jan. 22 store visit was Friday.
The store owner testified at Lohan's preliminary hearing that it took 10 minutes before she realized Lohan left wearing the necklace.
Prosecutors are trying to convince a Los Angeles judge that Lohan should be tried on charges she stole a necklace from an upscale jewelry store, laying out evidence in a hearing expected to last all day Friday. Lohan has pleaded not guilty.
Kaman says she did not have any agreement with Lohan allowing her to leave the store with the necklace.
It wasn't the first time that the actress tried to leave the store without paying. A salesperson testified Friday that she had to stop Lohan from leaving with one of the store's earrings. Kaman said she thought it was an accident and didn't give the actress any additional scrutiny when she returned to the store and tried on the necklace a few days later.
An associate of Lohan's turned in the necklace to detectives in early February after the investigators obtained a search warrant for the actress' home.
Lohan was wearing two other necklaces on Jan. 22, when she came into the store. Lohan wore both pieces to court on Friday, and took them off at one point while her attorney cross-examined Kaman.
Defense attorney Shawn Holley showed Kaman the necklaces and questioned her about why she didn't notice the actress was still wearing the store's necklace, even though Lohan's neck - and by Holley's description, cleavage - were clearly visible.
"I wasn't looking at her chest," Kaman said. "I was looking at her face."
Holley's cross-examination of Kaman was at times testy, with Superior Court Judge Stephanie Sautner warning both the store owner and Holley to be more respectful.
The "Mean Girls" star arrived at the courthouse wearing a black long-sleeve shirt, blue trousers and a scarf. The preliminary hearing is expected to feature testimony about Lohan's actions and the necklace. Both Kaman and the salesperson said Lohan was texting and sometimes fidgety during her trips to the store.
Prosecutors and the store, Kamofie & Co., have said the necklace is worth $2,500, although Lohan's attorney has indicated she plans to challenge its value.
Kaman said she paid $850 for the necklace, but it is standard practice to mark up jewelry two to three times before selling it.
The store owner was also questioned about her decision to license surveillance video for sale. Kaman said she entered into an agreement with a broker who licensed the footage to a commercial images division of The Associated Press, which then licensed it to Entertainment Tonight. Kaman said she has never been paid for the deal, but also admitted she never cleared the deal with detectives investigating the case.
The actress has rejected two plea deals that carried guaranteed jails sentences. This week, the makers of a pair of films announced they have cast Lohan in two movies, one of which will begin production later this year.
She conferred often with Holley throughout the morning's testimony. Prosecutors are expected to call two more witnesses in an afternoon session.
Preliminary hearings generally end with a judge determining there is enough evidence for the case to continue, although the levels of proof are lower than during a trial.
The stakes are slightly higher for Lohan, who was on probation for a 2007 drunken driving case when Kamofie reported the necklace stolen. The judge who initially handled the necklace theft case has said he thinks Lohan violated the terms of her release, but has assigned the preliminary hearing to another jurist. Sautner, the new judge, could send Lohan to jail after Friday's hearing if she determines there is enough evidence to support the probation violation.
Lohan, 24, has been a courthouse fixture since last May when she missed a hearing in her drunken driving case. Since then, two judges have sent her to jail twice and rehab, also twice.
Kamofie reported its necklace stolen roughly three weeks after Lohan was released from treatment at the Betty Ford Center, where she also encountered trouble. A rehab worker accused Lohan of battery during an argument in which the worker told authorities Lohan had missed curfew and was caught with two other girls who admitted they had been drinking.
Prosecutors declined to file charges in that incident.
On Wednesday, Fiore Films announced it had cast the actress to play the wife of John Gotti Jr., the son of the infamous mob boss dubbed the "Teflon Don," in a biopic of the family. The project, title, "Gotti: Three Generations," is scheduled to begin shooting later this year in Lohan's native New York.
In an interview with the AP, Lohan said she was eager to put her court cases behind her and once again be known as an actress.
"I'm really excited to be back on set and clear up all the misinterpretations about me and show this is what I love to do," Lohan said.
"I think in the past, I had a lot of distractions," she said. "I've learned a lot. I've lived a lot. When I'm on set, it's about the film."
Also see: Lindsay Lohan Photos
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