Fifth Circuit Reinstates Texas Federal District Court’s Nationwide Preliminary Injunction and Stay of the Corporate Transparency Act
Late in the day on December 26, 2024, the United States Court of Appeals for the Fifth Circuit reinstated a nationwide injunction staying enforcement of the Corporate Transparency Act (CTA) and its reporting rules and regulations. The panel that will be ruling on the merits of the federal government’s underlying appeal decided to continue the nationwide injunction to “preserve the constitutional status quo” (i.e., protect any potential constitutional rights) while it examines the parties’ legal arguments more closely. The Fifth Circuit is reviewing the appeal on an expedited basis.
An explanation of the District Court’s December 3, 2024, injunction and stay can be found here.
Other cases challenging the constitutionality of the CTA also remain pending or may yet be filed in various courts around the country. Whether any of these cases will ultimately hold that the CTA is unenforceable is uncertain.
If you have questions about your CTA-related engagement with the firm, please contact your Miller Canfield lawyer for further guidance.
