ENTERTAINMENT: LiLo Borrowed Necklace?

For everybody freaking out about the felony charges LiLo may or may not be facing over her alleged jewelry theft, she has news for you: That necklace was just borrowed. "We vehemently deny these allegations and, if charges are filed, we will fight them," her lawyer tells People. Furthermore, a source tells TMZ that LiLo says people like the jewelry store owner "know I'm in a vulnerable position," and take advantage by making up stories.

"Lindsay doesn't understand how the store can file a police report when they let her borrow the necklace," a source tells People. "She's used to getting gifted items that are worth way more than that. And why would she steal a necklace? She has tons of jewelry and doesn't need anymore."