The Ninth U.S. Circuit Court of Appeals affirmed a lower court's ruling dismissing a class action lawsuit against the Central Asia Institute and co-founder Greg Mortenson.
The civil lawsuit alleged fraud and racketeering.
Four plaintiffs claimed Mortenson lied in his best selling books "Three Cups of Tea" and "Stones into Schools" so he and his publisher could sell books and raise money for the Central Asia Institute.
The lawsuit was filed after an investigative report said Mortenson fabricated parts of his story.
Federal court documents filed Wednesday say the district court acted within its discretion to dismiss the complaint.
Last year, then-Montana Attorney General Steve Bullock announced a settlement with Mortenson over the alleged mismanagement of the charity. Mortenson agreed to repay $1 million to the Central Asia Institute.