Sources familiar with the matter tell us Scaglia dropped his claims against the "My Unorthodox Life" star -- this after they filed dueling lawsuits, accusing the other of malfeasance tied to their fashion talent management org/shared company accounts.

We're told Scaglia and Haart reached a settlement, in which he agreed to dismiss all of his claims -- including his $850k lawsuit against her. In exchange, Hart will no longer go after him to cover her attorney fees associated with his legal action against her.

Julia tells TMZ, "I believe the fact that Silvio withdrew these cases with prejudice, meaning dismissed permanently, on the day discovery was due, speaks volumes. No money was paid by me and I intend to continue to pursue my fraud and defamation litigation against Silvio, and others named in those cases."

BTW, their divorce battle is also ongoing ... and by the looks of it, will be anything but amicable.

Remember, Scaglia accused Haart of misappropriating funds -- in this case, allegedly withdrawing that $850k without prior authorization -- shortly after getting removed as CEO from their joint venture.

Scaglia claimed Haart had only been given permission to use $250k -- but suggested she yanked out way more in retaliation for getting fired. Oh, and she immediately filed for divorce too.

He's now dropped all claims of misappropriation of funds against Julia.

Of course, she countersued ... claiming Scaglia and Freedom had actually screwed her out of hundreds of millions of dollars she claimed she was owed via stock options.