The Situation Settles Legal Battle With Anti-Fat Cream Company

According to court docs ... the "Jersey Shore" star and a company called Performance Brands both agreed to dismiss their dueling lawsuits (Sitch had filed a counter suit) after settling out of court.

Sources close to Sitch tell us ... PB agreed to cough up a "good sum of money," and Sitch won't have to shell out a dime.

TMZ broke the story ... PB sued Sitch after they hired him to be the face of their fat-metabolizing cream (and forked over a $75k advance) -- claiming he did ZILCH to promote the product. The company also claimed he breached his contract by hiding his RX addiction.

Sitch counter-sued, claiming PB was the one in breach of contract.