A panel of judges in Majorca have ruled that a holidaymaker from the Rhondda, who claimed she was gang-raped, willingly had sex with the men.
The woman had been holidaying in a Majorcan resort
The three judges decided the four men accused of attacking her had been truthful when they said they had sex with the woman with her consent.
The 22-year-old claimed she was snatched from the doorway of a disco and raped by three men in May 2005.
The judges suspected the woman gave her version to try to get compensation.
She made her allegation against three of the four Spanish men at the Palace of Justice when they went on trial last month, accused of sexual aggression.
Under Spanish law, that offence covers all forms of sexual assault, including rape.
Four men stood accused but the woman told the court that only three men had been involved.
At the trial, the woman said she had been out drinking with a group of friends on the last night of their holiday in Port de Pollenca and ended-up at a disco in the port area of the resort.
While standing in the doorway of the club, she claimed she had been grabbed from behind and overpowered.
After being gagged and blindfolded, she was dragged to a nearby warehouse where the attack happened, the court heard.
Two of the accused men said the woman had sex with several men in the doorway of the night club.
Both of them, who worked as doormen at other discos, said she had invited them to have sex "without a word".
In their written findings, the judges said the account the woman gave did not sound convincing and believable, nor convey the truth. They also said her account was not logical or coherent.
They also suspected she had given her version in an attempt to get compensation and a payout from her holiday insurance.