So True? So False? Did Lindsay Lohan Get Caught Buying Drugs?!

Paparazzi catches actress taking possession of a curious plastic bag filled with an indeterminate substance—but would LiLo be so brazen as to get a fix in broad daylight?

By now, you've seen the video—Lindsay Lohan stoop-sitting in Venice with a group of friends. Someone presents a Ziploc bag with indeterminate contents (something white, that much is clear), Lindsay furiously scribbling down notes (all while seemingly oblivious to the sneaky, lingering paparazzi) and then the whole group taking off in something of a hurry.

Well, it doesn't take Nostradamus to figure out what happened next: the rumor mill went crazy with dissected still shots of the supposed transaction while speculation flew and furious that LiLo had reverted back to the good bad old days.

And while nothing seems out of the question when it comes to Lindsay's behavior, would she really be so brazen as to conduct a drug deal in broad daylight in light of her recent legal troubles? Call in the authorities, because this rumor is…

So false!

Turns out that allegedly illicit substance? Crystals. Who knew there was such a thing as curbside New Age deliveries?

"X17 is nuts!" Lindsay tweeted yesterday. "Their false stories are absurd and gross…"

Lohan's rep also hit back at the report, though opted for slightly stronger language in his condemnation.

"X17 has knowingly and consciously made inferences about Lindsay that are completely untrue, and have created a fictitious story for their own benefit," Steve Honig, told E! News. "We were not given a chance to comment on this story before it went up, and no effort was made by X17 to gather the facts about what actually occurred.

"When I addressed this [with an X17 VP], she told me 'we're not the New York Times.'"

Though, according to X17, the quote was taken slightly out of context and was actually said in response to Honig's declaration that "the New York Times would never do this story."

Still, the paparazzi site persevered in sensationalizing the video—which, while it shows several grainy exchanges, doesn't ever clearly show money changing hands or a clear transaction taking place.

"X17's blatant disregard for the truth is shocking," Honig said. "They have made a horrific mistake; the worst part is, they know it but don't care. If they had taken the time to look into this a little bit further, they would have found out that the bag contained crystals from a local shop in Venice."

In other words, there were certainly some shady dealings going on. Just not by Lindsay.