Oluronke Briana Adusei v. Colleen Auer, et al.

District Court, D. Arizona·Decided January 20, 2026·No. 2:25-cv-01722·Unknown

Opinion

WO

Oluronke Briana Adusei, No. CV-25-01722-PHX-SMB

Plaintiff, ORDER

v.

Colleen Auer, et al.,

Defendants. The Court now considers Defendant Arizona College’s Motion to Dismiss Plaintiff Oluronke Briana Adusei’s Amended Complaint (Doc. 29).1 The Court also considers Defendant Bonnet Fairbourn Friedman & Balint’s (“BFFB”) Motion to Dismiss. (Doc. 76). The Court grants Arizona College’s Motion. The Court grants BFFB’s Motion. The Court will give Plaintiff leave to file a Second Amended Complaint. The Court also denies Plaintiff’s Motion to Deny Defendant Arizona College’s Second Motion to Dismiss Plaintiff’s Amended Complaint, which was improperly filed as a Response to Arizona College’s Motion.

1 Plaintiff filed the following documents in response to Arizona College’s Motion: (1) Memorandum of Points and Authorities in Opposition to Defendant Arizona College’s Second Motion to Dismiss (Doc. 53); (2) Motion to Deny Defendant Arizona College’s Second Motion to Dismiss Plaintiff’s Amended Complaint (Doc. 54); and (3) Plaintiff’s Opposition to Defendant Arizona College’s Second Motion to Dismiss (Doc. 56). Under Local Rule of Civil Procedure 7.2(c), Plaintiff is allowed one responsive memorandum. The Court thus relies on Plaintiff’s Opposition to Defendant Arizona College’s Second Motion to Dismiss as the operative Response because it is the most expansive and otherwise includes the arguments made in the other filings. The Court first addresses Plaintiff filing two Amended Complaints. Plaintiff filed her first Amended Complaint on June 24, 2025 (Doc. 20). On June 26, the Court issued an Order authorizing Plaintiff to file a redacted version of the Complaint. (Doc. 22 at 1.) On June 27, Plaintiff filed a Redacted Amended Complaint. (Doc. 24.) The Amended Complaint is dated May 24, 2025 (Doc. 20 at 27) and the Redacted Amended Complaint is dated May 21, 2025 (Doc. 24 at 20). The Amended Complaint relies on exhibits attached to the Redacted Amended Complaint but are not otherwise attached to the Amended Complaint. (Doc. 20 at 26.) Arizona College’s and BFFB’s Motions are both based on the Amended Complaint because it is the more “expansive” pleading and otherwise contains the claims asserted in the Redacted Amended Complaint. (Doc. 29 at 2 n.1; Doc. 76 at 2.) Plaintiff does not contest this treatment in any of her responsive briefings. The Court, in its discretion and in recognition that Plaintiff is proceeding pro se, will thus treat the Amended Complaint as the operative pleading. However, the Court will refer to the exhibits attached to the Redacted Amended Complaint insofar as the Amended Complaint relies on those exhibits. The Amended Complaint alleges as follows. Plaintiff was dismissed from Arizona College’s nursing program in 2018. (Doc. 20 at 3 ¶ 8.) In response, Plaintiff sued Arizona College, represented by BFFB and Defendant Colleen Auer. (Id. ¶ 9.) The parties settled. (Id. at 4 ¶ 11.) Plaintiff received a “lump sum of $56,744” in satisfaction of her claims but “without any explanation or allocation. (Id. at 6 ¶ 21.) However, the funds were “clearly identifie[d] . . . as refunds for Loans, Pell Grants, and Institutional Loans.” (Id.) Plaintiff contends that “this lack of transparency was a calculated decision to misrepresent all funds as compensatory damages and thus subject. [sic] Plaintiffs [sic] to outrageous income tax.” (Id. ¶ 22.) Plaintiff “explicitly and repeatedly requested that the refunded student loan and grant monies be returned to the U.S. Department of Education, as they were disbursed through Title IV federal funding.” (Id.) However, Auer ignored this request, which was “deliberate and conspiratorial in nature.” (Id.) Plaintiff continues, alleging that Arizona College and BFFB each submitted a Form 1099-MISC (“1099”) to the IRS. (Id. at 7 ¶ 24.) The forms are alleged to report the $57,644 as “self-employment income” paid as “compensation for services rendered. (Id. ¶¶ 24, 27.) “This resulted in a fabricated income of $115,288 being reported to the IRS, despite the Plaintiff never working for either Defendant or receiving compensation in that amount.” (Id. ¶ 28.) Based on these filings, “[i]n 2023, Plaintiff was blindsided by IRS notices alleging that she owed more than $30,000 in back taxes on an alleged $115,288 in unreported income.” (Id. at 8 ¶ 31.) After two years of “extensive correspondence,” the “IRS ultimately acknowledged inconsistencies in the records and reduced [P]laintiff’s tax liability to $2,000 which [P]laintiff is still disputing to make sure her account is adjusted to reflect all corrections made.” (Id. at 10 ¶¶ 42, 44.) Thus, Plaintiff asserts a variety of claims predicated on the alleged duplicate submission of the 1099s. Plaintiff asserts a variety of claims under state and federal law. The Court pauses to note that Plaintiff’s own exhibits contradict many of her allegations. See United States v. Ritchie, 342 F.3d 903, 908 (9th Cir. 2003) (noting that the Court may “consider certain materials—documents attached to the complaint, documents incorporated by reference in the complaint, or matters of judicial notice”). Plaintiff alleges that Arizona College and BFFB submitted “1099s that falsely reported the entire $57,644 as self-employment income” and “compensation for services rendered.” (Doc. 20 at 7 ¶ 24, 27.) However, the attached 1099s show that the $57,655 was reported as “other income.” (Doc. 24-1 at 9–11.) Plaintiff also alleges that the settlement agreement “clearly identifies the funds as refunds for Loans, Pell Grants, and Institutional Loans paid by [Plaintiff] while attending Arizona College.” (Doc. 20 at 6 ¶ 20.) This allegation is both internally inconsistent and refuted by the settlement agreement itself. The Amended Complaint alleges that the $57,644 was issued to Plaintiff “without any explanation or allocation.” (Id. ¶ 21.) This allegation appears to be true as the settlement agreement does not “itemize” the $57,644 but only includes it as a whole figure meant to represent the settlement amount. (Doc. 24-1 at 64–77.) The Court thus ignores the Amended Complaint’s allegations insofar as they are clearly in conflict with Plaintiff’s attached exhibits. Sprewell v. Golden State Warriors, 266 F.3d 979, 988 (9th Cir. 2001) (“The court need not, however, accept as true allegations that contradict matters properly subject to judicial notice or by exhibit.”). To survive a Rule 12(b)(6) motion for failure to state a claim, a complaint must meet the requirements of Rule 8(a)(2). Rule 8(a)(2) requires a “short and plain statement of the claim showing that the pleader is entitled to relief,” so that the defendant has “fair notice of what the . . . claim is and the grounds upon which it rests.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007) (alteration in original) (quoting Conley v. Gibson, 355 U.S. 41, 47 (1957)). This notice exists if the pleader sets forth “factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). “Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Id. Dismissal under Rule 12(b)(6) “can be based on the lack of a cognizable legal theory or the absence of sufficient facts alleged under a cognizable legal theory.” Balistreri v. Pacifica Police Dep’t, 901 F.2d 696, 699 (9th Cir. 1988). A complaint that sets f

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Oluronke Briana Adusei v. Colleen Auer, et al., (D. Ariz. 2026).

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