Judge accepts Nebraska Medicine’s dismissal of its lawsuit against NU-Clarkson ownership transfer

The then-leaders of Nebraska Medicine, including Dr. Michael Ash, the nonprofit’s CEO, at right, and Lance Fritz, now-former chair of the Nebraska Medicine Board of Directors, hosted a forum Thursday with dozens of state lawmakers ahead of a University of Nebraska Board of Regents vote to buy out the 50% share of Nebraska Medicine co-owner, Clarkson Regional Health Services, the next day. Jan. 14, 2026. (Zach Wendling/Nebraska Examiner)

OMAHA — The Douglas County district judge presiding over Nebraska Medicine’s lawsuit against its parent organizations regarding its future ownership has accepted the nonprofit’s motion to dismiss the case.

In a one-page filing at 11:36 a.m. Friday, the nonprofit asked Douglas County District Judge Duane Dougherty to dismiss the lawsuit “without prejudice,” meaning it could be brought back. The lawsuit was filed against the University of Nebraska Board of Regents and Clarkson Regional Health Services. The filing asks that each party cover its own costs and attorney fees.

“Nebraska Medicine leadership and its Board of Directors are focused on moving forward under the single-member governance structure approved by the University of Nebraska Board of Regents last month,” the nonprofit said in a Monday statement.

Dougherty accepted the motion to dismiss at 1:07 p.m. Monday.

Spokespersons for the NU regents and Clarkson did not respond to requests for comment Monday.

The NU regents on Jan. 15 unanimously authorized moving forward with an $800 million deal with Clarkson to buy out its 50% share of Nebraska Medicine and purchase related properties. 

The transaction is set to “close” by June 30. NU plans to raise funds using debt restructuring and monetization of real estate bought under the agreement.

Once the purchase is complete, Clarkson has pledged to donate $200 million back to NU for “Project Health,” a $2.19 billion endeavor to build up the next generation of health care.

NU, Clarkson replace nearly all Nebraska Medicine board members in escalating ownership fight

The now-former Nebraska Medicine Board of Directors filed the lawsuit less than 24 hours after the regents acted. The former Nebraska Medicine leaders asked whether the regents and Clarkson could “unilaterally” enter into transactions that the nonprofit leaders argued violated a joint agreement between the two entities, as well as the nonprofit’s governing documents.

“Plaintiffs believe this answer is clearly no, and thus, file this lawsuit to stop an imminent, harmful and, in part, unlawful, set of transactions,” the lawsuit read.

After the lawsuit was filed, in separate statements, regents said NU was “saddened and puzzled by this unnecessary action,” and Clarkson’s directors said they were “surprised and disappointed.” 

Both organizations said they remained committed to working with Nebraska Medicine leaders on clarifying the nonprofit’s governing and management future and addressing any outstanding concerns.

Six days after the lawsuit filing, the regents and Clarkson removed eight members of the then-13-member board of directors and added three voting members, leaders from both NU and Clarkson who support the NU-Clarkson deal.

In the end, the new “interim” board was left suing itself.

One of the last hurdles in the deal now could be Legislative Bill 1125, from State Sen. Tony Sorrentino of the Elkhorn area. It would require legislative approval before NU could acquire a controlling or sole interest in any hospital or health care facility valued at more than $100 million.

LB 1125 is set for a Feb. 19 hearing before the Legislature’s Executive Board.

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