The nanny, Christine White, sued Presley back in August, claiming she was forced to work ridiculous hours without breaks.
Lisa Marie countersued White, claiming the nanny broke her contract by taking numerous pictures of the twin babies.
The case was dismissed today ... we do not know if it settled, because the nanny's lawyer is mum. Lisa Marie tells TMZ White's lawsuit was bogus and filed "out of utter greed and revenge because we terminated her ..."
Lisa Marie tells us she discovered White took over 165 unauthorized photos and videos of the babies and thereby violated the confidentiality agreement.
Elvis Presley's daughter says she made "a huge mistake ever hiring Christine and in exposing our babies to her."