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12/27/2024 9:13:48 PM | 1 minute read

Fifth Circuit Reinstates Injunction on CTA Reporting Rule

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Rodger Moss
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Morgan Jones
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Nicole Baek
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On Dec. 24, 2024, we reported that the U.S. Court of Appeals for the Fifth Circuit had granted the U.S. government’s emergency motion seeking a temporary stay, pending appeal, of the injunction imposed by the U.S. District Court for the Eastern District of Texas Court.

TODAY’S UPDATE: On Dec. 26, 2024, the Fifth Circuit’s Merits-Panel vacated the Motions-Panel’s Emergency Stay, thus reinstituting the District Court’s injunction of the CTA and Reporting Rule – once again relieving the reporting requirement. (“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 . . . [staying the] preliminary injunction enjoining enforcement of the CTA and the Reporting Rule is VACATED.”).

In reviewing the docket, it appears that the emergency stay is vacated for the life of the appeal, and that the injunction could remain in place until such time as the court hears oral argument, which is presently calendared for March 25, 2025.

What does this mean for reporting companies? We recommend that clients continue to monitor the situation and be prepared for any changes to beneficial ownership information report filing requirements as they arise.

Please reach out to the Brown Rudnick CTA Task Force with any questions. We are grateful for their guidance throughout the whole year, and especially during these holiday weeks. We will continue to provide updated reporting as events unfold.

Brown Rudnick CTA Task Force:

Rod Moss, rmoss@brownrudnick.com, 202‐536‐1712

Morgan Jones, mjones@brownrudnick.com, 212‐209‐4813

Rachel Moroknek, rmoroknek@brownrudnick.com, 617‐856‐8339

Nicole Baek, nbaek@brownrudnick.com, 202‐536‐1759

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Rodger Moss
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Morgan Jones
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Rodger Moss
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