THE CTA — AND THE BEAT GOES ON: THE FIFTH CIRCUIT CHANGES ITS MIND AND LEAVES THE INJUNCTION ISSUED BY THE TEXAS DISTRICT COURT IN PLACE

By: Trev E. Peterson

On December 26, 2024, a different panel of the Fifth Circuit Court of Appeals reviewed the stay granted by the motions panel of the Fifth Circuit on December 23, 2024 in the Texas Top Cop Shop, Inc. v. Garland case and determined that the appeal will remain expedited but to preserve what the panel called “the constitutional status quo” while the Fifth Circuit considers the parties’ arguments on appeal, the order granting the Government’s motion to stay the district court’s preliminary injunction enjoining enforcement of the Corporate Transparency Act was vacated so the preliminary injunction is back in force. Reporting companies now do not have to complete beneficial ownership reports until the Fifth Circuit acts again.