Settles Phone Smashing Lawsuit

Conor McGregor has one less legal issue ... the man suing him in the Miami phone smashing incident has dropped his lawsuit against the UFC star and all signs point to settlement.

As we previously reported, 22-year-old Ahmed Abdirzak sued Conor for battery, assault and intentional infliction of emotional distress over the March 11 incident at the Fontainebleau hotel.

Abdirzak claims Conor "flew into a rage and punched [Abdirzak's] smart phone out of his hand" before " stomping on the phone repeatedly." Abdirzak was demanding north of $15,000.

Part of the incident was captured on video and posted by TMZ Sports.

Now, court records show Abdirzak has filed new documents to dismiss his suit against…