San Lazaro Ass'n v. Connell

PAEZ, Circuit Judge.

This case arises from a joint effort by the State of California and the Federal Bureau of Investigation (“FBI”) to investigate fraud in the State’s Medicaid/MediCal Program. Plaintiffs are providers of medical services to Medi-Cal recipients. The California Department of Health Services (“DHS”) instructed the Controller of the State of California (“Controller”) to withhold payments to Plaintiffs after receiving an audit report from the Controller and other information from the FBI that Plaintiffs may have submitted fraudulent payment requests. Plaintiffs, in three separate…