Lindsay Lohan

Lindsay Lohan: No Charges in Alleged Theft

By Sara Hammel

05/18/2007 at 07:00 AM EDT

Lindsay Lohan will not face felony grand theft charges now that Los Angeles prosecutors say they cannot prove she walked away with a woman's clothes.

The district attorney's office said it had insufficient evidence to file charges on May 9, spokeswoman Jane Robison said Thursday, according to the Associated Press.

The case stems from allegations by a woman who claimed that Lohan, 20, stole a shirt and other clothing after visiting the woman's apartment while she was away for a few days.

According to the case-rejection notice, a housesitter had invited Lohan to the residence and told authorities that she had given Lohan some clothing.

The alleged victim, however, provided investigators with photos showing a plaid shirt she claimed Lohan had taken – only a plaid shirt Lohan was wearing reportedly did not match the one in the photos.

"The bottom line is that Lohan can't be shown to have been seen either taking or to have been later in possession of missing items and items she can be shown to have possessed were with [the housesitter's] permission," Deputy District Attorney Greg Somes wrote in the rejection notice, the AP reports.

Reps for Lohan did not immediately return calls.

Meanwhile, Lohan has been spending more quality time with her new British beau, Calum Best, 26.

After their romantic jaunt to the Bahamas last weekend, the pair were spotted over a late lunch at the New York restaurant Dos Caminos on Wednesday – giggling and being affectionate, sharing guacamole and drinking Diet Coke and water.

Tuesday night, Lohan and Best hit the hotspot Stereo to watch her ex, Jamie Burke, perform with his band Bloody Social. After the performance, the three of them hung out together in the club.

Still, a Lohan source told PEOPLE after the Bahamas trip that it wasn't necessarily the start of something serious /people/article/0,,20038909,00.html with Best.

"They were making out, but I wouldn't call it a relationship," says the pal. "More just hooking up."

• With reporting by MARK DAGOSTINO