The Anger Management star has denied various media reports that he destroyed a hotel suite following a night of partying. Sheen was in the city with his ex-wife Denise Richards and their two children.
Sheen was apparently so angered by the tabloid articles that he has instructed his legal team to ready a defamation suit in the hope of identifying the person spreading false news about him.
The actor believes someone should be forced to pay for trying to damage his reputation, according to TMZ.
Sheen has made various press appearances in the past few weeks to promote his new FX sitcom Anger Management.
He told ABC News earlier this week that he still drinks alcohol and no longer believes in rehab.
Watch a behind-the-scenes promo for Anger Management below: