Phil Millman v. Jan Inglish

MEMORANDUM

Appellants Phil Millman, a home infusion pharmacist, and his company Che-mique Pharmaceuticals appeal the district court’s order dismissing their 42 U.S.C. § 1983 action against employees of the California Department of Health Care Services (“DHCS”). Appellees’ audit of Appellants’ billings to Medi-Cal revealed an overpayment, but the California Department of Justice, the California Pharmacy Board, and the Medicare administration subsequently found no wrongdoing. Appellants allege that Appellees knew the audit employed faulty methodology and would produce the false result that Appellants had committed Medi-Cal billing fraud. The district court found: (1) the totality of Appellants’ allegations failed to satisfy the plausibility standard under Ashcroft v. Iqbal, 556 U.S. 662 , 129 S.Ct. 1937 , 173 L.Ed.2d 868 (2009); and (2) Appellants’ constitutional claims fail as a matter of law. We affirm.

We accept the facts alleged in the complaint as true. Mendiondo v. Centinela Hosp. Med. Ctr., 521 F.3d 1097 , 1100 n. 1 (9th Cir.2008). We review de novo a dismissal for failure to state a claim pursuant to Fed.R.Civ.P. 12(b)(6). Ileto v. Glock Inc., 349 F.3d 1191, 1199 (9th…