A New York judge has ruled that former Nassau University Medical Center President and CEO Megan Ryan can proceed with her claim that the East Meadow, N.Y.-based hospital’s parent company breached her employment agreement. The judge dismissed most of her other claims.
Ms. Ryan sued Nassau Health Care Corp. and three individual defendants in September 2025. She alleged breach of contract, unequal pay based on sex, retaliation, defamation and intentional infliction of emotional distress, according to court documents reviewed by Becker’s.
Here are seven things to know:
1. In a decision and order entered June 8, Justice Jerome Murphy of the New York State Supreme Court in Nassau County dismissed all claims against the individual defendants. They are Richard Becker, MD, who served as interim CEO of NHCC; Stuart Rabinowitz, former chair of NHCC’s board; and Richard Kessel, chair of the Nassau County Interim Finance Authority.
2. The court found that Ms. Ryan is a “limited-purpose public figure” because she gave the New York Post an interview about her resignation, meaning her defamation claims had to allege actual malice. The court ruled that the complaint did not include facts showing the defendants knew their statements were false. It also dismissed the claims against Mr. Kessel on the grounds that state law shields Nassau County Interim Finance Authority officers from liability for acts within the scope of their authority.
3. The court also dismissed several of Ms. Ryan’s claims against NHCC: breach of the covenant of good faith and fair dealing, unpaid wages, unlawful wage deductions, unequal pay based on sex, and retaliation. The court said NHCC, as a public benefit corporation, is a governmental agency and not an “employer” under state law. It said the retaliation claim failed because NHCC filed its lawsuit against Ms. Ryan after she was terminated.
4. Ms. Ryan’s breach of contract claim survived, along with her claims for unjust enrichment and quantum meruit. The court kept those alternative claims because Mr. Kessel told a local newspaper that the finance authority never approved Ms. Ryan’s employment contract. The court said that statement puts the validity of the contract at issue. It did not rule on whether the contract is valid.
5. Ms. Ryan filed a notice of appeal June 11 with the Appellate Division, Second Department. She is challenging the dismissal of every claim the court threw out. NHCC answered the surviving claims June 18. It denied liability and raised 11 affirmative defenses, including unclean hands and the faithless servant doctrine.
6. On July 16, the court granted a request from Ms. Ryan’s attorney, made with the consent of both sides, to stay the case until Jan. 14, 2027.
7. NHCC filed its own lawsuit against Ms. Ryan in August 2025. It alleges she authorized about $3.5 million in payouts to herself and 12 other former employees, including at least $1 million more than NHCC policy allowed. In a decision entered March 18, the same judge dismissed all of NHCC’s claims except breach of contract, breach of fiduciary duty and the faithless servant doctrine. Ms. Ryan has previously denied wrongdoing.
An attorney for Ms. Ryan declined to provide an on-the-record statement. Becker’s has reached out to Nassau Health Care Corp. and will update this story if more information becomes available.
