New York's nightspot Cheetahs named their VIP room in the actor's honor last year and for $250, customers could go into the private room - which is covered with pictures of Charlie - to eat sushi off the bodies of scantily clad women.
However, the 'Anger Management' actor - who was fired from 'Two and a Half Men' last year because of his erratic behavior and wild partying with his 'goddesses' - had his lawyer send a cease-and-desist letter to New York's Cheetahs, claiming that the Charlie Sheen Room could damage his reputation, much to the bemusement of the club.
Sam Zherka, president of the parent company that owns Cheetahs, told the New York Post newspaper: "We figured it would be comical to name a room after him. It was a room where you could dine on sushi served on cellophane on the body of one of our entertainers, not where you do crack.
"Then we got notification from his lawyer to cease and desist, claiming the usage of his name would be detrimental to his persona. They said they would sue us for millions if we carried on.
"How could sushi damage Charlie Sheen's reputation? We thought dedicating a room to dine in his honor would help repair and elevate his image. He should have called us up and thanked us."
The company have now complied with the request in a "ritual" removing of Charlie's image.
Sam added: "We have now removed his name, he wasn't doing big business for us anyway. We had a little ritual and threw his image in garbage - a celebration of Charlie Sheen being dumped."
Charlie's lawyer confirmed the actor had sought to take action against the club.
Marty Singer said: "We sent a cease-and-desist letter and they complied. This matter has nothing to do with Sheen's reputation. You can't use any celebrity name to promote a business without permission. They had no right to use his name."