The Fulbright Association is suing the organizer of a failed Atlanta Nobel Peace summit for breach of contract after the event collapsed this year amid high-profile strife.

Fulbright is now seeking the return of $25,000 it gave as a “sponsorship fee” to the proposed World Summit of Nobel Peace Laureates, according to a lawsuit filed in Washington, D.C. Superior Court last week.

The summit was intended to draw Nobel laureates and humanitarian organizations to Atlanta this fall, but fell apart over heated disputes between its organizer, Mohammad Bhuiyan, and prominent participants including Mayor Kasim Reed. Bhuiyan is the CEO of Yunus Creative Lab, the nonprofit that helped originally secure the 2015 Nobel peace summit for Atlanta. He and his wife, Shamima Amin, began the nonprofit with micro-lending guru Muhammad Yunus, who resigned from his own organization in April amid controversy.

After the city of Atlanta and a number of volunteers dropped out of the event last spring, the Rome-based organization that originally designated Atlanta as this year's host city moved the summit to Barcelona.

Both Bhuiyan and YCL are listed as defendants in the case. An attorney for Fulbright declined comment Monday due to the pending litigation.

In the lawsuit, Fulbright accuses Bhuiyan and YCL of fraud, asserting they sought its support last March, despite knowing the event was on the rocks. “Had Dr. Bhuiyan disclosed to Fulbright the precarious situation in which the summit found itself, Fulbright certainly would not have signed the (memorandum of understanding) or given YCL the $25,000 sponsorship fee,” the complaint states. Additionally, Fulbright argues that YCL failed to abide by several terms of the agreement.

An attorney for YCL and Bhuiyan pushed back against Fulbright’s allegations.

“The complaint is based upon false, inaccurate and uninformed information,” John Goselin said in a statement provided by Bhuiyan to The Atlanta Journal-Constitution. “Yunus Creative Labs, Inc. is working to treat all stakeholders in a fair and equitable manner. It is unfortunate that the Fulbright (Association) believes that it is entitled to preferential treatment.”

The lawsuit is the latest turn in a bizarre saga that became an international embarrassment for Atlanta. When first proposed, the event was a draw for Atlanta's elite, with many thinking the summit would bolster the city's image and honor its ties to three Nobel laureates: Dr. Martin Luther King Jr., President Jimmy Carter and Yunus.

Instead, the summit — or plans for it — devolved into legal threats and accusations of mismanagement and racism.

Reed and several other Atlantans clashed with Bhuiyan on hiring decisions, his leadership style and issues such as which institution should house donations.

Bhuiyan, a former college administrator, has publicly accused many participants of trying to "derail" his efforts. Bhuiyan, who is Bangladeshi, has also said racism is at play.

The public trouble began in March when Reed withdrew the city's participation from the event, citing concerns with its management. Yunus resigned just weeks later, stating in his resignation letter that his continued support of the event was misrepresented by his own board.

Other YCL board members later resigned, including Jason Carter, President Carter's grandson; Laura Turner Seydel, daughter of Ted Turner; and Willis Potts, the former chairman of the Georgia Board of Regents.

Atlanta gave $25,000 to the event, according to a city spokeswoman, but has not yet taken legal action to have the funds returned. Companies, including Coca-Cola and UPS, also gave funds to the summit. A UPS representative declined comment Monday, but acknowledged the company is seeking reimbursement. A Coca-Cola representative also declined comment.