TMZ broke the story ... McGraw became infuriated when the woman -- Jesslyn Taylor -- grabbed onto his jeans and ripped them during a song. He whisked her hand away ... hesitated ... and then delivered the wallop.
Taylor's lawyer, Eric Hertz, tells TMZ the case is now settled. He says, "it's been mutually resolved the old-fashioned way ... with a simple conversation."
Hertz wouldn't say if McGraw ponied up any dough, but that's how personal injury lawyers make money. We do know Taylor wanted an apology.