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Charles Barkley says there are no winners in the Jussie Smollett saga -- only losers -- and he feels TURRIBLE for the "real" victims of hate crimes whose stories will now be called into question.

"It's a really bad situation for everybody involved," Barkley told us in NYC ... "There's no winners. We're all losers."

Barkley has been ripping Smollett's tale about being attacked by homophobic racists for weeks -- even clowning the "Empire" actor as a liar on "Inside the NBA."

So, now that the 16 felony charges Smollett was facing for allegedly lying to police have been dropped -- we wondered if Barkley would back off Jussie.

Spoiler Alert: NO.

We asked Chuck if he thinks Jussie skated -- he replied, "That's an understatement."

Should Jussie have gone to jail?

"I don't think he shoulda went to jail, but it's unfortunate."

And, that's when Barkley told us about the "real victims" in the Smollett saga.

"Anybody who's gay who gets beat up, they're the real losers ... or black [people] who get beat up, they're the real losers."

As for Jussie, he maintains his innocence.

7:09 PM PT -- Jussie's attorney, Patricia Holmes, has just released a statement, condemning the local authorities who "have continued their campaign against Jussie Smollett after the charges against him have been dropped." She continues, "The case is closed. No public official has the right to violate Mr. Smollett's due process rights."

Holmes points out that Jussie is allowed the same rights as every citizen -- that he "is innocent until proven guilty in the court of law" and also has the right to speak freely about his innocence.

She states, "We respectfully request all government agencies involved live up to the ethical tenets of their office ... The case was dismissed. We should all allow Mr. Smollett to move on with his life as a free citizen."

The Cook County State's Attorney has circulated an email asking prosecutors in the office to come up with other examples where they just dropped felony charges the way they did in the Jussie Smollett case ... this, as Jussie was making a hasty retreat out of Chi-Town via O'Hare International Airport.

According to the memo, obtained by the CBS affiliate in Chicago, the brass wrote, "We are looking for examples of cases, felony preferable, where we, in exercising our discretion, have entered into verbal agreements with defense attorneys to dismiss charges against an offender if certain conditions were met, such as the payment of restitution, completion of community service, completion of class, etc."

Here's the problem. Jussie did not do community service. Community service is often part of a plea deal where a certain number of hours is required by defendants who are convicted or cop a plea. In Jussie's case, all he did was spend a few hours over the weekend at Rainbow PUSH. That is not community service.

As for restitution .. Jussie forfeited a $10k bond, and that's it. As the Mayor said, it doesn't come near to paying the cost of the investigation.

The email goes on to say, "Nobody is in trouble, we are just looking for further examples of how we, as prosecutors, use our discretion in a way that restores the victim, but causes minimal harm to the defendant in the long term."

The concept of "minimal harm" to the defendant is confusing. Typically what happens is that a defendant would plead no contest to a reduced charge or a reduced number of charges, and maybe get community service and/or pay restitution. That didn't happen in Jussie's case.

Wendy Williams isn't batting an eyelash about rumors regarding her husband allegedly having a baby with another woman ... but she is batting her ring finger at photogs.

The talk show host was leaving a Pilates studio Wednesday in NYC, where paps were at the ready to fire off questions about how she was doing ... without asking point-blank about her hubby's alleged mistress. It seems they didn't need to though ... based on her reaction.

Wendy told the paps that she was fine and was carrying on with her business -- in fact, she says she was just on her way to a book signing. When one photog asked about her wedding ring, Wendy was happy to flash it ... so it's pretty clear she's not sweating cheating stories.

We know that too. Sources close to the production of her show tell us her hubby's still working on set as an EP, and that he and Wendy have even interacted civilly behind the scenes.

2:42 PM -- Foxx is on a media blitz, and she just told ABC7 in Chicago her office did NOT ask for the resolution in Smollett's case to be made under seal. She says Smollett's criminal record -- in relation to the police report -- is what should have been kept under seal. She says her office is in the process of unsealing the resolution.

Foxx also broached the subject about her recusal and added there was zero outside influence on the case. Michelle Obama's former chief of staff, Tina Tchen, clarified her contact with Foxx saying, "Shortly after Mr. Smollett reported he was attacked, as a family friend, I contacted [Foxx], who I also know from prior work together."

"My sole activity was to put the chief prosecutor in the case in touch with an alleged victim's family who had concerns about how the investigation was being characterized in public."

Cook County State's Attorney Kim Foxx is going to bat for her office, which opted to let Jussie Smollett walk ... saying the public just doesn't understand this is how the law works.

Foxx went on WBEZ Radio in Chicago Wednesday and said she understands the confusion for those on the outside "who don't understand the intricacies of the justice system, who don't understand alternative prosecution or diversion or alternate outcomes outside of prison or lengthy probation."

On the flip side, Foxx -- who recused herself from the case -- says those who know the legal system know "the likelihood that someone would get a prison sentence for a Class 4 felony is slim."

As we reported ... First Assistant to the Cook County State's Attorney Joseph Magats said prosecutors dropped the case because Smollett doesn't have a violent criminal history and lying about the alleged attack was NOT a violent crime.

Foxx echoed Magats sentiment that although the charges were dropped ... everyone in their office backs the police investigation, and believes Jussie staged the attack. As she put it to WBEZ, you don't typically see people "give up $10,000 of their hard earned money" unless they're being held accountable for something.

Monica's officially calling it quits with her ex-NBA baller husband, Shannon Brown ... she's filed for divorce.

The singer filed the paperwork earlier this month in Atlanta. Monica and Shannon have a 5-year-old daughter named Laiyah together, and she has 2 sons from a previous relationship with rapper Rocko.

So far there are no details on whether she's seeking child or spousal support ... but we've learned Monica was unsuccessful in sealing the divorce docs.

The couple wed in 2010, but there was speculation they were separated in October 2018 ... until she shared a loving photo of the 2 together on Instagram. She hasn't been wearing her ring in Instagram photos for a few weeks though.

Monica famously claimed that Shannon -- best known for his time with the Lakers -- performed better on the court after he had sex with her ... especially when he played for the Phoenix Suns.

Ellen DeGeneres is selling yet another home -- this time it's in Beverly Hills.

The comedian just listed her 90210 home for nearly $18 million, a move that comes just 6 months after she purchased it. Ellen bought the place back in September for $15 million ... now she wants $17.95 mil.

Our real estate sources say Ellen spent $1 mil fixing the place up a bit with some modifications. The house is a beaut, located in the upscale Trousdale Estates neighborhood which is riddled with celebs.

This marks just the latest in a number of real estate moves Ellen and her wife, Portia de Rossi, have made over the past couple years.

They snapped up a sweet beachside estate in Carpinteria back in 2017, slashed the price of their Santa Barbara home a month later ... and then bought another home a month after that, sharing a property line with the one and only Oprah.

Just weeks later in December of that year, Ellen and Portia took a loss on the sale of their Beverly West condo.

Jussie Smollett hasn't regained the full support of his "Empire" family despite criminal charges against him being dropped ... and things are still very divided among cast and crew.

Production sources tell TMZ ... there are still people on the set -- especially writers -- who believe the dismissal of charges is a vindication, proving Jussie was a victim. Point of fact ... the State's Attorney believes Jussie staged the attack but felt it was a low-priority, non-violent crime that would have resulted in a punishment of community service, so why bother.

We're told there are a number of people on the "Empire" set who share the view that Jussie staged the attack and are shocked by the lack of consequences ... and don't want him back on the show. They are especially offended Jussie allegedly faked the attack to squeeze more money out of producers.

The contingent who are angry at Jussie believes he's a liability to the show and should be cut if the show comes back for season 6.

One thing has united the cast ... they are all thrilled the case is now closed because they believe it's a threat to the show's future.

Fact is ... the case isn't closed. The FBI is still investigating the letter that was sent 8 days before the "attack," to determine if Jussie sent the letter. If that conclusion is reached, he could face federal charges.

Wendy Williams is dealing with more drama off camera -- her husband allegedly just had a baby with another woman ... but he and Wendy are still on set together because he's still an executive producer of her talk show.

Production sources tell TMZ ... Kevin Hunter has remained on set with Wendy this week as she films her show -- despite the fact that a woman he's allegedly having an affair with just popped out a baby this week. We're told the 2 are interacting and there's no overt sign of hostility.

Rumors have been swirling about Hunter's alleged mistress, Sharina Hudson, giving birth in Philly Monday after having gone into labor Sunday night. The very next day, Kevin was on set.

We're told the vibe is awkward for others on the show, but so far ... Wendy and Kevin haven't shown their cards.

This, of course, follows Wendy's revelation last week she's living in a sober house to fight off temptations involving her addiction.

Beth Chapman isn't letting cancer beat her down or keep from enjoying the finer things in life ... and she says the bad guys still aren't safe either.

Dog the Bounty Hunter and his wife were dining out at Avra in Beverly Hills Tuesday night, and she's looking fantastic despite her recent cancer diagnosis. Beth tells us it's an everyday struggle, but she's hanging in there and choosing to stay positive ... and Dog's by her side.

Beth points out the couple's still doing what they're known for too -- catching criminals on TV. We broke the story ... Dog and Beth were committed to filming their new reality series on WGN, "Dog's Most Wanted," while she received chemo for her throat cancer, and sounds like they're gettin' it done.

Dog has some interesting thoughts on the Jussie Smollett case -- he has great sympathy for the actor.

Kim Kardashian is a huge fan of "Mama Medium" ... and the famous psychic wants to come all the way to Hollywood to read her fortune!!!

Mama Medium tells TMZ ... she's thrilled Kim felt the urge to show her new TLC show some love over the weekend on social media, and she's ready to return the favor by traveling to Cali to meet Kim, and put her psychic powers to the test!!!

As you know, Kim has always been super interested in the paranormal ... hanging out with "Long Island Medium" Theresa Caputo and getting psychic readings from celeb seer Jayne Wallace.

Now, Kim's all about Mama Medium's new show on TLC ... and the feelings are mutual, because Mama's whole family says they're ready to venture West to meet up with Mrs. West for a glimpse into her future.

Mama -- government name Jennie Marie -- claims she can communicate with the dead as a medium, psychic and clairvoyant. She tells us she's been looking at pictures of Kim and her late father, Robert Kardashian, and feeling the presence of another spirit -- possibly Kim's grandmother.

We're told TLC producers are reaching out to Kim to coordinate a meeting with Mama Medium.

Janice Dickinson's taking the L in her legal battle with Ryan Seacrest's production co., which she claimed made her look like an arrogant, unprofessional ex-supermodel on "Shahs of Sunset."

A judge in L.A. County tossed the whole matter out of court Tuesday ... essentially saying Janice has nothing to bitch about because she was not misportrayed on the 'Shahs' episode in question.

TMZ broke the story ... about a year ago, Janice sued Seacrest's company -- which produces the reality show -- because she was pissed about her appearance on the program. In her suit, Janice said the show was edited to make it look like she jacked a romper GG was supposed to wear in a fashion show.

The scene did show GG taking potshots at Janice, referring to her as an "old ass bitch" who died out with the Flintstones. Not nice, for sure.

However, according to docs obtained by TMZ ... the judge said there was nothing in the edit of the show that was misleading enough about Janice for her to win the lawsuit.

1:05 PM PT -- First Assistant to the Cook County State Attorney Joseph Magats -- who replaced Kim Foxx when she recused herself -- says they dropped the charges because Smollett doesn't have a violent criminal history, and lying about the alleged attack was not a violent crime.

Magats says his office prioritizes violent crimes in Chicago, and felt this case wouldn't be the best use of resources. For the record, he says he made this decision alone ... without consultation from Foxx.

He also squarely says he believes Jussie DID concoct a hoax and lied about it to police. Even though Chicago PD and Mayor Emanuel ripped the State's Attorney's Office ... Magats made it clear he stands by the findings of the cops, and believes they had the evidence to get a conviction.

The obvious question is asked ... why take the case to a grand jury, only to drop the charges? Check out Magats' answer -- a lot of people, and not just Chicago PD, won't buy what he's selling here.

BTW, Magats says discussions have been going on for weeks with Jussie's camp ... about dropping the charges, and his community service. All of which must have been done in total secrecy because we know cops, the Mayor and others involved in the case had no clue this was going to happen.

10:45 AM PT -- Mayor Rahm Emanuel is very strongly hinting at corruption in the State's Attorney's Office, calling the decision to drop the charges against Smollett a "whitewash of justice."

The Mayor added, "From top to bottom, this is not on the level." He called for accountability from the prosecutors.

Emanuel was joined by Chicago PD Superintendent Eddie Johnson who said he didn't feel justice was served by letting Smollett off the hook.

What's more, Johnson said if Jussie was, in fact, innocent ... he should've taken his day in court, and not broker a backdoor deal in secrecy. Bigger picture -- Johnson feels the City of Chicago is still owed an apology, as he believes Jussie carried out a hoax.

10:15 AM PT -- FOX says, "Jussie Smollett has always maintained his innocence and we are gratified that all charges against him have been dismissed."

As for WHY they were dropped -- you'll recall State's Attorney Kim Foxx recused herself from the case. She reportedly had asked cops to stand down at the behest of Tina Tchen -- Michelle Obama's former Chief of Staff and a friend of Jussie's family. The conflict forced Foxx to bow out.

The Cook County State's Attorney's Office tells us the decision to drop all charges against Jussie was made by Joseph Magats -- the First Assistant State's Attorney -- who was placed in charge of the case after Foxx's recusal, and NOT by Foxx.

It's still odd. Sources tell TMZ the prosecutor in the case, as late as Friday afternoon, was making plans to handle issues involving cameras in the courtroom for the trial ... and seemed completely unaware of plans to drop the case.

9:22 AM PT -- Jussie and his lawyer, Patricia Holmes, just addressed the media, and the takeaway message was simple ... he's happy and wants to get on with his life. Holmes reiterated this was not a deal Jussie struck with prosecutors -- instead, they dropped the charges on their own, and he forfeited his bond voluntarily ... it wasn't a tit-for-tat situation.

Jussie thanked everyone who supported him through this case, and maintained he'd been truthful and consistent throughout the case. He added ... that he would never put the LGBTQ movement "through a fire like this." He also thanked his "Empire" cast members for their support.

If you're wondering if things will really get back to normal for Jussie -- he stopped to take a few selfies with fans on his way out of court.

And there's this ... federal law enforcement sources tell us Jussie is still under investigation for the threatening letter -- with racist and homophobic slurs -- that was sent to him at the "Empire" studio 8 days before the alleged attack.

You'll recall ... the Chicago PD Superintendent claimed Jussie sent it to himself, but our sources say the FBI had not reached that conclusion yet.

8:45 AM PT -- Jussie's family has also released a statement celebrating the news. They state, "This morning truth has prevailed and (Jussie) has been vindicated."

They continue, "While many were quick to rush to judgement before hearing the actual truth, we are grateful that the truth about Jussie has come to light. We look forward to bringing the real perpetrators to justice."

8:35 AM PT -- State's Attorney Kim Foxx's office says, "After reviewing all of the facts and circumstances of the case, including Mr. Smollett's volunteer service in the community and agreement to forfeit his bond to the City of Chicago, we believe this outcome is a just disposition and appropriate resolution to this case."

The statement is consistent with what our sources said about Jussie only getting community service if he'd been convicted. The decision is NOT sitting well with Chicago PD.

On the other hand, Jussie's co-workers on "Empire" are celebrating on Twitter.

Jussie Smollett will not be prosecuted for allegedly faking a racial attack, because all charges have been dropped!!!

Jussie and his lawyers ran to court Tuesday morning in Chicago, where he was facing 16 felony counts of lying to police in the alleged racial and homophobic attack.

Jussie will surrender his $10,000 bond. But, that's it. The case is over.

We're told the State's Attorney, Kim Foxx, told Chicago police she was dropping the case because Jussie would have only gotten community service if convicted and she said he has already performed community service so there is no point in prosecuting him. We could not find any record of Smollett doing community service.

We're told Chicago police are "furious" and feel something untoward is going on with Kim Foxx.

Jussie Smollett had pals of his in the Cook County State's Attorney's ear early on in his case -- and, based on leaked correspondence, it looks like she acted on his behalf.

Texts and emails between State Attorney Kim Foxx and two Jussie allies -- one of which is reported to be a family member of his -- have been leaked, and they show that Foxx was asked to intervene in the case a few days after he'd reported the alleged attack to Chicago PD. It appears that she did exactly that ... and kept Jussie's camp in the loop.

The initial correspondence started when Michelle Obama's former chief of staff, Tina Tchen, emailed Foxx to say that she was reaching out on behalf of Jussie's family to express "concerns" they had with how the investigation at that point was being handled.

Jussie had not been charged with a crime yet, but it's believed Chicago PD was already doubting his story and leaking info to the press pushing that narrative.

Foxx responded to Tchen on Feb. 1, saying ... "Spoke to Superintendent Johnson. I convinced him to Reach out to FBI to ask that they take over the investigation. He is reaching out now and will get back to me shortly."

The same day, an unnamed relative of Jussie's texted Foxx herself, as well, and Foxx said she was working on getting the case sent over to the FBI. The relative replied, "Omg this would a huge victory." Foxx then responded, "I make no guarantees, but I'm trying."

Later, Foxx recused herself from the case when Jussie became a suspect. And, of course, her office just announced Tuesday that it was dropping all of the charges against Jussie, after coming out strong with a 16-count indictment just weeks earlier.

Her official reasoning for dropping the charges ... Jussie has done community service in the community, so we're good. Her office asked a judge to seal the case, and they obliged. Mayor Rahm Emanuel strongly hinted at corruption in the State's Attorney's Office.

The Chicago-Tribune first reported on the leaked texts and emails.

Nikki Bella is NOT leaving the WWE on bad terms -- it's the opposite -- with sources telling us she still has a GREAT working relationship with the company and is DEFINITELY open to returning to the ring.

35-year-old Bella just announced she's hanging up her wrestling boots after 12 years with Vince McMahon's promotion -- mostly because of the wear and tear on her body ... and also to pursue other business ventures.

But, sources close to Nikki tell us ... she still loves wrestling, still loves the WWE and would be down to make cameos in the future -- as long as the timing is right.

In fact, we're told Nikki will remain a WWE ambassador even though she won't be wrestling full-time. Also, she plans on continuing her reality show, "Total Bellas," which is produced by WWE.

As we previously reported, Nikki made her retirement decision after a recent trip overseas that was particularly rough on her body. She just can't handle the constant punishment a full-time wrestler endures.

Nikki had neck surgery 3 years ago stemming from a wrestling injury, and she's been battling neck pain ever since.

Bella has said she plans to focus on growing her businesses -- which includes a podcast, activewear line, beauty products and even a wine label.

It's a wrap for Nikki Bella in the WWE ... the former champ says she's closing the book on her wrestling career -- claiming her body just can't handle the punishment anymore.

Bella said she realized she needed to retire after returning from a recent tour of Europe -- saying, "[The tour] was good but I just feel like I'm too old for that travel."

"The travel was really, really rough," Bella said on her reality show, "Total Bellas" ... "So, I realized, I was like, why am I doing this? I don't feel good."

Nikki said she feels the women at WWE are doing amazing things and she doesn't feel she needs to keep wrestling ... explaining, "I really am ready to hang up the jersey, like I can say it fully."

Nikki's sister, Brie -- who announced her retirement on a "Total Bellas" episode earlier this month -- gave her full support to Nikki, saying she can hang her WWE jersey "right next to mine."

35-year-old Nikki explained her body just doesn't feel great anymore -- and she wants to turn her focus on other business endeavors ... including her fashion brand.

"Here's to closing one chapter and the next one opening."

Bella is a sure-fire WWE Hall of Famer -- she is a 2-time WWE Divas champion and one of the most popular women in the history of the company.

"Veep" star Sam Richardson says he knows one sure thing that'll make a man's pecker shrivel like a frightened turtle ... dating someone with opposing political views.

We got Sam out in L.A. and had to ask him about a new study that says millennials care more about their date's politics than great sex. The study -- conducted by OkCupid -- found now more than ever, both men and women prioritize their dates' political beliefs over their mastery in the sack.

Sam -- best known as Selina Meyer's trusted aide-turned-chief-of-staff on the HBO hit comedy -- says he agrees with OkCupid's study ... especially in this political climate. Our camera guy pushes him and asks if great sex could be what brings both sides together.