'Vanderpump Villa' Marciano Settles Legal Battle Against 'Mormon Wives' Demi Over Sexual Assault Claims

"Vanderpump Villa" star Marciano Brunette reached a settlement in his defamation case against 'Secret Lives of Mormon Wives' producers and Demi Engemann ... after claiming she falsely labeled him a sexual predator.

According to court docs obtained by TMZ, Marciano informed the court the parties reached a settlement, which will end with them stipulating to dismiss the entire case with prejudice -- meaning it can't be refiled.

As TMZ first reported ... Marciano sued 'SLOMW' producers and Demi after she claimed he sexually assaulted her -- the claim was referenced on the show.

Marciano has been adamant the hookup was consensual and insists Demi only changed her story to control the narrative.

The producers initially argued Marciano had signed paperwork barring him from bringing any sort of lawsuit against them ... but now it appears all of the parties decided to settle the case and put the matter behind them, rather than fully litigate the matter.