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The 28-year-old actor was reportedly being disruptive during the first act of the performance, smoking in the theater, and appeared to be intoxicated.
"He has been detained and charged with disorderly conduct and criminal trespass," an NYPD spokesperson told The Hollywood Reporter.
"The incident occurred at Studio 54 during Cabaret at around 9 p.m [ET]. He was acting disorderly, yelling and being loud, and is currently being held at the Midtown North police station," said the police. "He will be taken to jail tonight and will then have to appear in court."
Representatives for LaBeouf have not yet responded to requests for comment.
Broadway songwriter Benj Pasek was in the theater during the incident and tweeted about what he saw:
Just saw Shia LaBeouf in handcuffs in tears surrounded by 6 police officers outside of CABARET the musical. Oh New York, u is a crazy bitch
- Benj Pasek (@benjpasek) June 27, 2014
LaBeouf's latest incident in a string of unusual behavior this year came the night before the release of "Transformers: Age of Extinction," the first of the Michael Bay series not to star the actor.
Actors and comedians are having a field day on Twitter with the news:
I feel you Shia: In 1993 I was carried out of Les Mis screaming because I couldn't handle the intimations of death.
- Lena Dunham (@lenadunham) June 27, 2014
"You know you're a fuckin' G when you're arrested during Cabaret." --Gillian Jacobs
- Lena Dunham (@lenadunham) June 27, 2014
Shia LaBeouf - do what you want to Alan Cumming but if you lay even one finger on the Newsies I will kill you!!!!!
- billy eichner (@billyeichner) June 27, 2014
Shia LaBeouf was arrested at the Broadway production of Cabaret so I finally feel comfortable telling you I was waterboarded at Kinky Boots
- billy eichner (@billyeichner) June 27, 2014
I guarantee you there were at least 3 middle aged women at tonight's performance of Cabaret talking more during the show than Shia
- billy eichner (@billyeichner) June 27, 2014
Maybe Cabaret Act 2 was just gonna be too dark for Shia and he was trying to cover. I mean it does get real heavy.
- Ana Gasteyer (@AnaGasteyer) June 27, 2014