By Kate Ward
February 10, 2011 at 10:03 PM EST

Lindsay Lohan’s lawyer told CNN that the actress will seek a plea bargain in the felony grand theft case against her. “Ms. Lohan maintains her innocence, and now that I’ve seen the police reports, I believe the case is entirely defensible,” Shawn Chapman Holley told CNN. “Having said that, we will entertain a discussion concerning a plea if it means no jail so that she can move forward with her recovery and her career.”

On Wednesday, the actress pleaded not guilty to the charge, and is free on bail. A hearing is set for Feb. 23. The charge stems from a Venice, Calif., store’s claim that Lohan had stolen a necklace worth $2,500. If she’s convicted of the felony grand theft charge, she could receive up to three years in jail.

Read more:

Lindsay Lohan officially charged with felony grand theft

Lindsay Lohan to be charged with felony grand theft

Lohan’s lawyer denies necklace was stolen

Lindsay Lohan under investigation for alleged jewelry theft

Lindsay Lohan: 18 Highs and Lows

Lindsay Lohan’s lawyer insists actress was sober during Betty Ford stay

Lindsay Lohan remains at Betty Ford; still under investigation for probation violation

Lindsay Lohan reportedly leaves rehab. What should she do next?

Lindsay Lohan accuser fired

Lindsay Lohan under investigation for criminal battery

Lindsay Lohan loses ‘Inferno’ role: Is this for the best?

Lindsay Lohan’s ‘Inferno’ role flames out

Lindsay Lohan admits she failed drug test