The "Mean Girls" actress, Lindsay Lohan is accused of stealing the $2,500 (GBP1,670) item from California store Kamofie & Co. in January. She has maintained her innocence and rejected a second plea deal in March.
Lindsay Lohan appeared in court on Friday for a preliminary hearing, where testimonies were heard from a number of potential witnesses, including police detectives and shop owner Sofia Kaman.
Judge Stephanie Sautner denied a motion filed by Lindsay Lohan's lawyer Shawn Holley to dismiss the case and ruled the star had broken the terms of her probation, stemming from a previous DUI charge.
However, she decided to reduce the crime from a felony to a misdemeanour because the DUI count took place four years ago.
Lindsay Lohan formerly pleaded not guilty to the charge.
Judge Sautner set a trial date for June 3 and ordered Lindsay Lohan to attend a pretrial date on May 11, reports TMZ.com.
The actress faces a stint in jail if convicted of the charge.