AM Law Alert Update : 5th Circuit Vacates Stay of CTA Injunction
In what is beginning to feel like a fever dream for those who have been following the Corporate Transparency Act’s (CTA) roller coaster ride through the courts, yet another update is now here:
Late last night, on December 26, 2024, a three-judge panel of the Fifth Circuit Court of Appeals vacated a separate panel’s order issued three days earlier staying the nationwide preliminary injunction enjoining enforcement of the CTA issued by the United States District Court for the Eastern District of Texas.
This ruling preserves the “constitutional status quo” by enjoining all CTA compliance requirements and enforcement mechanisms pending final adjudication of the merits of the case. Absent further review from the United States Supreme Court, entities have no obligation to comply with the CTA’s beneficial ownership requirements.
We will continue monitoring daily all developments coming out of the 5th Circuit which, as you can tell from the frequency of these alerts, remains a fluid situation.
For more information, please contact Conner Bourne.
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