Bright Eyes singer Conor Oberst is letting the chick who falsely accused him of rape walk away clean — he’s decided to drop his $1.2 million lawsuit.

According to court docs filed Friday … Conor dismissed the suit against Joanie Faircloth 4 days after she finally admitted she made up the whole story.

Incredibly gracious move on Conor’s part … considering he said the bad publicity created by Faircloth’s lie cost him $200K from his publishing company. Not to mention she probably doesn’t have the million bucks.

Conor’s dismissal was filed without prejudice  — which means he could refile if more lies start flying out of Faircloth’s lying liar face.

Read more: http://www.tmz.com#ixzz389CnvCAP