NASCAR's Kurt Busch Calls BS On Clothing Lawsuit

Being accused of choking your ex-GF is terrible for business ... so says a clothing company that's suing Kurt Busch, claiming the negative publicity surrounding his domestic violence case almost destroyed them -- though Kurt says it's all a bunch of crap.

The NASCAR driver is being sued by the people behind the Panic Switch clothing line -- who say they struck a deal with Busch in 2013 to push the brand, specifically in the NASCAR community. At one point, Busch also loaned the company $300,000.

According to the suit, business seemed to be moving in the right direction -- but things came to a screeching halt when Busch was accused of beating up his ex, Patricia Driscoll, in September 2014.

For the record, Busch was never charged in the domestic violence case, with prosecutors ultimately saying there was not enough proof.

Still, Panic Switch says Busch's reputation became toxic and it dragged down the company -- which was unable to sign new drivers or close business deals because no one wanted ANYTHING to do with Busch. Panic is suing for unspecified damages.

Busch's lawyer Larry Stein tells TMZ Sports, "The complaint makes reckless allegations which are totally without merit."

"The complaint is nothing more than a false justification for their business failure which lost Kurt's money."