Lindsay Lohan's latest scandal revolves around a $2,500 necklace that she was seen taking from a high-end jewelry story near her Venice Beach home, and although she could face charges of grand theft, her father calls it one big "ridiculous" misunderstanding.

"When Lindsay wants jewlery, she askes me and I buy it. And if I think it's too pricey, she buys it," he tells me. "She gets so much on consignment and that's exactly what happened here."

Michael isn't buying reports that the jeweler and the police worked together for weeks to craft a sting operation in order to catch the 'Mean Girls' star wearing a $2,500 necklace.

"If she took something, it would have been addressed at the end of that business day."