Not a lawyer, but I thought he was trying to claim that NU's handling of the case has caused him reputational damage that prevents his being hired elsewhere, not that his contract at NU wasn't renewed. I don't think he has a leg to stand on there, either.
That's the part I don't understand in all this. Assuming your employer publicly damaged your reputation but nevertheless honored their employment contract, why does that give them a "get out of jail free" card? It seems to me that the actions are unrelated.