Ahmed Abdirzak, 22, previously sued the UFC star for battery, assault and intentional infliction of emotional distress over the March 11 incident at the Fontainebleau hotel in Miami, Florida. Abdirzak claimed McGregor "flew into a rage and punched [Abdirzak's] smart phone out of his hand" before "stomping on the phone repeatedly." Abdirzak was demanding more than $15,000 in the lawsuit.
TMZ reports that court records show Abdirzak has filed new documents to dismiss his suit against McGregor with prejudice, which likely means the two reached a settlement agreement.
While the lawsuit may be wrapping up, McGregor, 33, still faces criminal charges for the incident, including felony robbery and misdemeanor criminal mischief. If convicted on all counts, McGregor faces up to six years in prison, TMZ reports.
His case is due back in front of a judge this week.
In the weeks following the incident, McGregor announced his sudden retirement from MMA.
"Hey guys quick announcement, I've decided to retire from the sport formally known as 'Mixed Martial Art' today," he wrote on Twitter in the early hours of March 26. "I wish all my old colleagues well going forward in competition. I now join my former partners on this venture, already in retirement. Proper Pina Coladas on me fellas!"
UFC president Dana White told ESPN's Brett Okamoto that McGregor had achieved "incredible things" in the UFC and that it "totally makes sense" for him to retire.
"He has the money to retire and his whiskey is killing' it," White said via text message, referring to McGregor's Proper No. Twelve whiskey.
"It totally makes sense," White added. "If I was him I would retire too. He's retiring from fighting. Not from working. The Whiskey will keep him busy and I'm sure he has other things he's working on."
The controversial star has garnered a reputation for his rowdy behavior, which very much extends to outside the octagon. He was arrested last August for allegedly shattering the window of a bus filled with UFC fighters in New York City.
Earlier this year, he received a suspension and fine for a brawl that unfolded after an October fight in Las Vegas against UFC lightweight champion Khabib Nurmagomedov.
McGregor told CNN in August that he attributes much of his success to his background and upbringing, but also to a fierce bond he feels with his family name.
"The McGregor name is historic when it comes to combat," he said. "Way back, study my family's name, study my family's heritage. We were a feared clan."
"At one stage, it was punishable by death to have the surname McGregor. It's in my blood to fight — and that's it. It's what my ancestors have been doing long before me," he added.