Remember when James Harden was accused of punching a Lakers fan in the face who told him "Kobe owns your ass?"

Well, seems Harden has finally thrown in the towel in that legal war ... TMZ Sports has learned.

We broke the story, Harden was sued by a guy who admitted taunting James on the way out of a nightclub back in 2013.

The accuser says James socked him in the kisser and flipped him off ... before speeding off into the night.