The actor had reportedly stolen a necklace from a California store earlier this year.
Media report said that the Los Angeles Superior Court Judge Stephanie Sautner had also reduced Lohan's charge from felony grand theft to a misdemeanor and imposed the 120-day sentence besides the punishment of conducting 480 hours of community service.
Lohan was freed after her bail amount of USD 75,000 was submitted.
The controversial actor has been in jail earlier for several reasons.
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