The newspapers can legally report on arrests, whether the arrest was correct or not. If your girlfriend is cleared, you can contact the paper to request they publish a follow-up article, but I doubt they will.
Instead, focus on getting your girl out from under these charges. She's looking at a misdemeanor under Penal Code section 538d. There are a bunch of different subsections that cover several situations, but if you look at them, almost all of them require that the suspect (in this case, your girlfriend) have the intent to make somebody think she was a cop.
If the shirt just said "Gang Unit" with no other badge, insignia or anything else to indicate law enforcement, I'm not sure they could prove this case against her. Especially since I'm pretty sure there was nothing else about the way she was dressed, her hair, etc. that would make her look like a cop.
She needs a lawyer, but if I'm reading between the lines correctly, she's got a pretty decent shot at beating this.
Many people wear FBI t shirts, NYPD hats, etc., thus, with a good lawyer, she can beat charges. Newspapers can report on arrests.
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