On Dec. 23, 2024, a motions panel for the Fifth Circuit Court of Appeals issued a per curiam opinion in Texas Top Cop Shop v. Garland granting the government’s emergency motion for a stay pending appeal of the nationwide injunction that previously enjoined FinCEN’s enforcement of the Corporate Transparency Act (the “CTA”).
Just three days later, a different panel has now vacated that order. This means that the CTA is once again subject to a nationwide injunction and FinCEN is prohibited from enforcing the filing obligations thereunder. No beneficial ownership filings are required to be made at this time – though the BOI filing system will still accept filings for companies who wish to voluntarily comply.
The panel that has reinstated the injunction will handle the merits of the appeal. “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” is vacated, the merits panel wrote in an order issued late Thursday Dec. 26, 2024.
For additional background on the CTA, please see our overview of the Corporate Transparency Act here or reach out to any of the individuals listed below.
