London, Aug 31 - Singer-actress Lindsay Lohan could face legal action after claims that she lost $1.9 million worth of borrowed jewels.

The 23-year-old was loaned the bling by swanky Beverly Hills store XIV Karats more than two months ago. But when bosses asked her to return the gems, she admitted that they had been nicked, according to US reports.

Lohan's Hollywood Hills home was burgled last weekend, with thieves making off with a safe as well as handbags, photos and videos, reports thesun.co.uk.

'Lindsay claimed they had been stolen. They disappeared. XIV are not happy about it. The jewels were in Lindsay's care and they were only on loan. If something is not resolved soon, there will be legal action taken,' a source told a US website.

But Lohan's representative denied the report.

This is not the first time that Lohan has lost expensive jewellery. In June, Christian Dior jewels worth $406,400 vanished at a London photoshoot with Lohan.