7/16 -- Harden's lawyer, Tony Bisconti, tells TMZ Sports ... "Mr. Harden denied these false allegations and vigorously defended against this meritless lawsuit from the outset."
"As a result of Mr. Harden’s refusal to allow himself to be subjected to these baseless accusations, the plaintiff ultimately decided to drop the lawsuit, which was dismissed without the plaintiff receiving any monetary payment."
"We are pleased with the outcome and glad to have it resolved."
Remember when James Harden was accused of punching a Lakers fan in the face who told him "Kobe owns your ass?"
Well, seems Harden has finally thrown in the towel in that legal war ... TMZ Sports has learned.
We broke the story, Harden was sued by a guy who admitted taunting James on the way out of a nightclub back in 2013.
The accuser says James socked him in the kisser and flipped him off ... before speeding off into the night.
For his part, Harden never copped to the punch but said if -- and only IF -- he did it, the guy had it coming because he posed a threat to James and his friends.
They were poised for a legal showdown -- but now, we've learned Harden struck a settlement with the accuser ... essentially ending the case for good. The terms of the deal were not disclosed.
Moral of the story ... don't talk smack to James Harden, he just might punch you in the face.