Update: Fifth Circuit Reinstates Nationwide Preliminary Injunction Against CTA

On December 26, 2024, the U.S. Court of Appeals for the Fifth Circuit merits/oral argument panel vacated the decision of the motions panel and REINSTATED the District Court’s preliminary injunction against the Corporate Transparency Act (“CTA”). So, the CTA is once again subject to a nationwide preliminary injunction and will NOT go into force in January. The merits/oral argument panel will now hear the DOJ’s interlocutory appeal of the preliminary injunction, with a decision from the Fifth Circuit, absent intervention by the U.S. Supreme Court, likely in late 2025. This alert shares a copy of the latest Fifth Circuit order.

The bottom line, for the time being, is that the CTA is once again subject to a nationwide preliminary injunction and, unless the U.S. Supreme Court intervenes, will not be going into force in January. Click here for a copy of the latest Fifth Circuit order.

Pursuant to this development, there is no filing requirement under the CTA at this time. As previously advised by Dykema, reporting companies may delay filing beneficial ownership reports until the injunction is lifted or until a decision by the Fifth Circuit on the merits appeal is reached. We continue to monitor further developments. For more information regarding the CTA or how the new developments around the CTA may impact your business, please contact your local Dykema relationship attorney.