5th Circuit reverses stay of injunction in CTA case

In an order filed on December 26, 2024, the Fifth Circuit Court of Appeals vacated its own stay of the District Court. prior order of the enforcement of the January 1, 2025 deadline for reporting compliance under the Corporate Transparency Act in Texas Top Cop Shop v. Garland. Previously, FinCEN had extended the deadline from January 1, 2025.

The Fifth Circuit justified this flip-flop on the basis that:

“The merits suit now has the call, which remains expedited, and an information program will issue immediately. However, in order to maintain the constitutional status quo while the trial panel considers the parties’ serious substantive arguments, that part of the motion panel’s order granting the Government’s motion to stay the district court’s preliminary injunction requiring the application CTA and the Reporting Regulation. is VACANT. “

We’ll keep you posted as things develop.