TBA Law Blog


Posted by: Azya Thornton on Dec 30, 2024

On Dec. 26, the U.S. 5th Circuit Court of Appeals issued an order vacating the government’s motion to stay a district court's preliminary injunction against the Corporate Transparency Act (CTA), stating the action was necessary to "preserve the constitutional status quo while the merits panel considers the parties' weighty substantive arguments." This order follows a series of legal actions regarding the CTA. Earlier this month, a Texas district court issued a nationwide preliminary injunction, halting all reporting requirements under the CTA. The 5th Circuit had initially stayed the injunction, reinstating the mandatory reporting requirements. However, after the Dec. 26 order, the court lifted the stay, again halting the reporting requirements until the appeal is resolved. As a result, the original nationwide preliminary injunction is now in force. The New York Times has more on this decision.