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(Adds comment from Central Asia Institute)

By Lori Grannis

MISSOULA, Mont., April 30 (Reuters) – A federal judge

dismissed a class-action fraud lawsuit on Monday against Greg

Mortenson, co-author of bestselling book “Three Cups of Tea,”

that accused him of fabricating much of his story about

promoting education for girls in Pakistan and Afghanistan.

The lawsuit, which also targeted Mortenson’s co-author,

publisher and his non-profit Central Asia Institute, alleged

fraud, deceit and unjust enrichment over what the plaintiffs

said was fabricated material intended to “induce unsuspecting

individuals to purchase his books and to donate” to his

institute.

But U.S. District Judge Sam Haddon dismissed the case for

what he said was the “imprecise, in part flimsy, and speculative

nature of the claims and theories advanced” by the plaintiffs.

The lawsuit was filed in May 2011 following a critical

report by CBS television’s “60 Minutes” program that challenged

the credibility of biographical details in Mortenson’s memoir.

In particular, the “60 Minutes” report disputed his account

of being kidnapped in Pakistan’s Waziristan region in 1996, and

said his institute, founded to build schools for girls in

Afghanistan and Pakistan, was largely being used to promote the

book.

The book chronicles Mortenson’s unsuccessful attempt to

climb the mountain K2 in South Asia and his encounter with

impoverished Pakistani villagers who he said inspired him to

build schools and other projects in the region.

It stayed on the New York Times nonfiction bestseller list

for four years.

The Central Asia Institute said in a statement emailed to

Reuters that it was “invigorated” by the decision.

“Greg is on his way overseas. Our dual mission continues

unabated,” said Anne Bayensdorfer, executive director of the

institute, adding: “Greg stands by the stories in his books.”

After a year-long investigation by the Montana attorney

general also spurred by the “60 Minutes” report, Mortenson

acknowledged that less than half of his institute’s proceeds

have gone into building schools but said “much of the remainder

was spent on CAI’s other charitable programs.”

Earlier this month, Mortenson agreed in a settlement with

the state attorney general to pay $1 million to compensate his

Montana-based charity for using his non-profit to promote and

buy copies of his books, but he will be allowed to continue

providing education to impoverished communities in Pakistan and

Afghanistan.

Mortenson’s charity received $100,000 from President Barack

Obama’s $1.4 million 2009 Nobel Peace Prize award. The author

and philanthropist received other support from high-profile

backers and took numerous awards before the April 2011 “60

Minutes” report.

(Writing and additional reporting by Mary Slosson; Editing by

Cynthia Johnston)