Does a district court err in denying leave to amend where the amendment would be futile or subject to dismissal?

"district court does not err in denying leave to amend where the amendment would be futile, or where the amended complaint would be subject to dismissal." Saul v. United States, 928 F.2d 829, 843 (9th Cir. 1991) (citations omitted). If the district court is correct in making a finding that "there was no possibility of stating a cause of action . . . . the dismissal would not be an abuse of discretion." Shermoen v. United States, 982 F.2d 1312 (9th Cir. 1992).