Madonna's Lawyer Slams 'False' Settlement News in Delayed Concert Lawsuit

1:38 PM PT -- At a hearing Monday, the judge presiding over this case ended up siding with Madonna's legal team -- namely, there was clearly NO settlement that had been struck, and some kind of miscommunication occurred. He struck the settlement notice, and the case will proceed.

The plaintiffs now have until July to respond to Madonna's motion to dismiss.

Madonna's lawyer is firing back after plaintiffs in her delayed concert lawsuit claimed a settlement had been reached between them ... which he says is absolute bull crap.

In new docs obtained by TMZ ... the attorney for the Material Girl asked the judge to strike a settlement notice filed by Michael Fellows and Jason Alvarez's lawyer from the record -- making it clear the parties have not settled this matter.

The reason Madge's lawyer wants this stricken is because these two guys filed something in court that suggested a settlement had been reached in the case -- but Madonna's lawyer says that's not the case at all, although he did acknowledge they've been in settlement talks.

Madonna's attorney explains he told these fellas that Madonna and Live Nation -- he's repping both BTW -- rejected settling right now ... and it seems these guys jumped the gun. That's certainly how Madonna and co. are framing it anyway.

The plaintiffs' attorney, FWIW, says his clients accepted Live Nation's settlement offer and attached a draft settlement agreement to that end. Madonna's camp says they were asked to confirm the terms of the agreement ... but before they could respond with a denial, a "False Notice of Settlement" was filed on Friday. So, some lines appear to have been crossed.

Per Madonna's lawyer's letter ... they demanded Marcus Wolf Corwin withdraw the notice by Monday morning ... which he has yet to do. So on paper, it looks like a settlement was struck.

While Madonna's lawyer made it clear the singer and Live Nation aren't opposed to settling the case, they slammed the plaintiffs' legal team -- suggesting the filing was a part of a "harassment campaign" in an effort to get paid.

Remember, Madonna has been trying to get a lawsuit over her late concert start time thrown out ... previously claiming her real fans know she's always fashionably late to take the stage.

Both parties are supposed to talk about the concert drama in court today -- so there may be a development by EOD ... stay tuned.