The lawsuit, filed by Sheikh Khalifa Ali al-Khalifa al-Sabah, accused Zain of unfair selection of members to the board of directors in April 2011.
Kuwait's Court of Cassation rejected the essence of Sheikh Khalifa's lawsuit in a hearing on January 30 and ordered him to pay the fees associated with the case, the filing said.
The ruling was final since the court was the highest legal body in Kuwait for the suit, it added.
At the April board meeting, Sheikh Khalifa was voted off the board, and Bader al-Kharafi, the vice chairman of Kharafi Group was elected in his place.
Sheikh Khalifa had steadfastly and successfully opposed the Kharafi-led proposed sale of a 46 percent stake in Zain to Etisalat, with the Kuwaiti company's feuding board one of the reasons why UAE's top telecom operator scrapped its US$12bn offer in March 2011.