Kilpatrick Townsend & Stockton LLP’s Post

On December 3, 2024, a federal district court in the Eastern District of Texas issued a nationwide injunction on the Corporate Transparency Act. The court determined, among other reasons, that the law likely exceeds Congress’ authority and is therefore unconstitutional. To learn more on the ruling, how FinCEN has responded, and what actions to take, read the full alert here: tinyurl.com/ClientAlertCTA

A U.S. District Court recently issued a nationwide preliminary injunction, temporarily halting the Beneficial Ownership Information (BOI) reporting requirement under the Corporate Transparency Act. For now, businesses that have not yet filed their BOI reports can hold off while the judicial process unfolds. This pause provides time to assess how the ruling might shape the implementation of these requirements moving forward. For more details, click the links below. https://lnkd.in/gDqJYNJJ... https://lnkd.in/gvFqZXrc...

A Texas Federal Court has ruled the Corporate Transparency Act (CTA) unconstitutional, citing overreach under the Commerce Clause. A nationwide injunction temporarily halts enforcement, but the decision is likely to be appealed. Businesses should stay informed as legal challenges continue...

A federal court in Texas has struck down the Corporate Transparency Act (CTA) as unconstitutional, halting its nationwide enforcement. The CTA, designed to prevent financial crimes by requiring small businesses to report beneficial ownership, has faced criticism for overstepping Congress's authority under the Commerce Clause. While the ruling pauses compliance obligations for now, appeals are underway, and the law's future remains uncertain. Lockaby PLLC will continue to provide updates as the situation develops. #CorporateTransparency #SmallBusinessCompliance #LegalNews #CorporateLaw #BusinessLaw #BOIReporting

The Department of Justice has appealed the decision in NSBA v. Yellen (holding that the CTA is unconstitutional and enjoining the federal government from enforcing it against the plaintiffs in the case). Although the DOJ did not request a stay to the District Court's ruling in connection with filing its notice of appeal, I expect that they will do so in a later filing. More to follow. The Stinson LLP Corporate Transparency Act Working Group will continue to monitor these developments and is available to assist clients navigate this evolving legal landscape while continuing to meet ongoing CTA related reporting obligations. #cta #corporatetransparencyact #beneficialownership #constitutionallaw #departmentofjustice #courtofappeals #corporatelaw

The United States District Court for the Eastern District of Texas has issued a preliminary injunction against enforcing the Corporate Transparency Act in response to a lawsuit that contended the CTA infringed upon constitutional principles by imposing federal oversight on state-registered companies and requiring disclosure of detailed personal information about their owners. The Court stayed the deadline to file a report under the Administrative Procedure Act (APA) § 705. We’re monitoring FinCEN’s next steps to advise clients on what to do regarding filing before the upcoming December 31 deadline. If you have any questions, please contact Emma Rodgers at erodgers@wsh-law.com. Read more: https://lnkd.in/gu5zZZUx #WSHCBLaw #CTA #CorporateTransparencyAct

Update: Corporate Transparency Act On Hold On December 3rd, a District Court in Texas issued a preliminary injunction finding the Corporate Transparency Act (CTA) unconstitutional, preventing enforcement of the CTA nationwide. Though FinCEN has filed a notice of appeal, the CTA requirements are currently on hold. Read more about this update: https://lnkd.in/g9Jnt5tb

Barrister Tom Bushnell has been quoted in a Law360 article on the FCA's recently-announced change to evidence disclosure in enforcement proceedings. Tom explained how the recently announced change could benefit defendants by helping them build a fuller picture of the case against them. “[...] the ability to marshal all the relevant evidence can prove crucial in allowing the target of enforcement action to fully understand what took place, and thereby provide a cogent response to allegations", Tom said. https://lnkd.in/eP_GzMt9

Important CTA Update: As of December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction against the enforcement of the Corporate Transparency Act. Please click the link for additional information: https://lnkd.in/gNtWPvqh #corporatetransparencyact #CTA #FinCEN #BOI #legalnews #legalupdate #CSRLawFirm

If your company was required to file a beneficial ownership report, it’s important to closely monitor developments regarding the enforcement of the Corporate Transparency Act (CTA). The Department of Justice has filed emergency motions to stay a recent district court order that temporarily halted enforcement of the CTA. The government has requested a decision by December 27, 2024. If the stay is granted by either the district court or the Fifth Circuit Court of Appeals, the CTA and its January 1, 2025 reporting deadline could once again take effect.