Corporate Transparency Act Preliminary Injunction BACK IN PLACE!
Yesterday, the Fifth Circuit vacated its stay order of December 23, 2024 resulting in the District Court’s injunction still being in effect. Thus, the nationwide injunction preventing enforcement of the Corporate Transparency Act’s requirement that nonexempt companies report the identity of their beneficial owners and applicants for incorporation remains in place.
Here is the key language from the court’s order:
The merits panel now has the appeal, which remains expedited, and a briefing schedule will issue forthwith. However, in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments, that part of the motions-panel order granting the Government’s motion to stay the district court’s preliminary injunction enjoining enforcement of the CTA and the Reporting Rule is VACATED.