8/15/2011 3:30 AM PDT

'Basketball Wives' Star -- Drops Topless Photo Lawsuit

"Basketball Wives" star Evelyn Lozada decided she's finally ready to move past her topless photo scandal ... and has dropped her lawsuit against the woman she suspects of leaking the racy pics.

TMZ broke the story ... Lozada sued a wannabe castmember named Vanessa Davis back in 2010 -- claiming Davis was bitter when producers decided not to bring her on the show  ... and retaliated by hacking into Lozada's email, stealing nude pics of Evelyn ... and leaking  them online.

Sources connected to the case tell us ... Evelyn's lawyers searched high and low for Davis to serve her with the lawsuit -- but couldn't track her down. We're told Evelyn got sick of wasting time, energy and money ... and ultimately decided to drop the case altogether.

For her part, Davis tells TMZ, "Evelyn's lawsuit had no merit. I am really happy that her tainted name is no longer attached to mine."