The L.A. County District Attorney's Office tells TMZ ... it's rejected the case, citing insufficient evidence. TMZ broke the story ... Teana Louis sued the rapper claiming he sexually assaulted her on multiple occasions between June and October of 2016.
Too Short was adamant Teana conjured up the whole thing just to get into his pockets.
The D.A. says there wasn't enough evidence to show she didn't consent to their sexual encounters.