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Joe Francis: Lawsuit Gone Mild

7/31/2008 12:35 PM PDT BY TMZ STAFF

A girl who said she dropped her top for Joe Francis' cameras when she was just 16 has dropped something else for Joe too -- a lawsuit.

The "GGW" founder has settled a lawsuit filed in Panama City, Fla. -- not with a payout, says his lawyer, but by dropping a countersuit against the woman. The unnamed chick had alleged she was underage when she flashed for Joe in 2002.

Francis served a year of hard time in jail, and still faces federal tax evasion charges in Cali.

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