Nicholas M. Ruge

False Claims Act

• U.S. ex rel. Schutte v. Supervalu & U.S. ex rel. Proctor v. Safeway: Represented defendants in district court and Seventh Circuit. Won complete dismissal of two False Claims Act suits with billions of dollars at issue by identifying a new defense and filing supplemental summary judgment motions. Successfully defended the decisions on appeal in the Seventh Circuit. Recognized by The American Lawyer Litigation Daily for the result.
• U.S. ex rel. LaFauci v. AbbVie & U.S. ex rel. Miller v. AbbVie: Won dismissal with prejudice of all claims in False Claims Act suits alleging Anti-Kickback Statute violations in connection with patient support services.
• U.S. ex. rel. Olhausen v. Arriva: Counsel for Arriva in appeal on the scope of the False Claims Act’s scienter requirement.
• Counsel for major pharmaceutical company in False Claims Act case alleging off-label promotion.

Commercial Litigation

• Elliott Management v. AbbVie: Won summary judgment for AbbVie and its CEO on all claims brought by nine major hedge funds alleging fraud in connection with the company’s termination of its $55 billion agreement to acquire Shire plc. Co-authored the winning summary judgment and appellate briefs, resulting in affirmance in full by the Illinois Court of Appeals and Illinois Supreme Court.
• Enhabit v. Nautic Partners & Vistria Group: Trial counsel for private-equity firm in two-week bench trial on $500 million claims alleging aiding and abetting fiduciary breach. Case awaiting decision.
• Representing plaintiff in action asserting wrongful transfer of LLC assets worth over $400 million.
• Won temporary restraining order against multinational chain of beauty stores, preventing the unilateral termination of a decade-long joint enterprise operating agreement. Resulted in favorable contract renegotiation for client.
• Represented private equity company in confidential JAMS Employment arbitration over former partner’s breach of employment contract.
• Counseled medical device manufacturer on litigation related to former employee’s violation of non-compete agreement.
• Defended a Fortune 100 pharmaceutical company and its directors in a shareholder derivative suit arising out of the company's stock buyback and alleged blockbuster drug kickback scheme. Won on motion to dismiss.
• Calumet Oil Refinery litigation. Won dismissal with prejudice of all personal injury claims brought against Calumet Specialty Products as seller of an oil refinery.

Restructuring

• In re J. C. Penney Company, Inc.: Represented J. C. Penney Company, Inc. and 17 of its affiliates in their successful pre-arranged chapter 11 cases that addressed more than $8 billion in liabilities.
  • Secured $450 million in new money debtor-in-possession financing as trial counsel for the debtors in contested financing proceedings.
  • Trial counsel for the debtors in contested hearings that resulted in the sale of the company’s operating assets, ensuring the survival of the company and preservation of more than 60,000 jobs. 

Antitrust

• In re Broiler Chicken Antitrust Litigation: Co-authored winning summary judgment briefing for all defendants on claims that poultry producers violated the Sherman Act and RICO by conspiring to manipulate a price index.
• New Mexico v. Gilead Sciences et. al: Representing Gilead in action brought by New Mexico Attorney General alleging anti-competitive settlement agreements, terms in a joint venture agreement, product hopping and fraudulent marketing schemes. Won reversal in the New Mexico Supreme Court of an order asserting personal jurisdiction based on a stream-of-commerce theory.
• In re Pork Antitrust Litigation: Representing Clemens Family Corporation in antitrust class action seeking treble damages for alleged conspiracy to raise pork prices by reducing supply and exchanging competitively sensitive information among pork producers.

Investigations and Enforcement

• Counsel private equity sponsor and portfolio company founders on confidential products liability investigation.
• Counsel companies in confidential antitrust and False Claims Act government investigations. 
• Counsel medical device company on regulatory compliance issues related to COVID-19 testing.
• Represented medical device company in negotiations with the Food and Drug Administration regarding labeling of medical device product.
• Represented company in federal investigation involving alleged violations of the Bank Secrecy Act and Anti-Money Laundering regulations.
• Counseled medical device company regarding strategy and contract compliance when a former acquisition target turned competitor. 
• Counseled AbbVie in its $63 billion acquisition of Allergan.
• Counseled major league sports team on negotiations with local government over pending regulations.

Drafted clemency petition that secured commutation of life sentence for Darryl Hamilton, who was sentenced to life without parole in 1999 under Illinois’ “three-strikes law” for a juvenile offense committed at the age of 17.

Represented plaintiffs in Karnoski v. Trump, a constitutional challenge to the Trump administration’s ban on transgender military service. Obtained landmark ruling at Ninth Circuit finding transgender-based classifications subject to heightened scrutiny. For his work on the case, including before the United States Supreme Court, Nick received Kirkland’s Pro Bono Service Award and Pro Bono All Star Award.

Represented South Shore Chamber, Inc., a nonprofit that promotes economic development in south Chicago, in appeal of administrative order requiring the nonprofit to repay state grant funds based on alleged accounting errors. Won judgment for South Shore on appeal, ending six years of prior litigation.