The wheels of justice can be slow, but they are churning rapidly now at the Fifth Circuit, where a flurry of activity has taken place following the Department of Justice’s appeal of a nationwide injunction issued against enforcement of the Corporate Transparency Act by a Texas district court.
On December 23, 2024, a motions panel of the Fifth Circuit granted DOJ’s emergency motion for a stay pending appeal, which re-instated CTA registration requirements but briefly extended the deadlines.
However, on December 26,2024, after the plaintiffs’ December 24, 2024, petition for an emergency rehearing, a merits panel of the Fifth Circuit vacated the motions panel’s order that the preliminary injunction be stayed. Bottom line: filing requirements and enforcement of the Corporate Transparency Act are once again stayed—nationwide—until the merits panel decides the appeal. The merits panel re-instated the injunction “…in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments[.]”
An expedited briefing schedule has been issued, which requires submission of the parties’ respective briefs between February 7, 2025 and February 28, 2025. Oral arguments are currently scheduled for March 25, 2025.
Further updates will be provided as new information is available. At present, filing and registration requirements under the CTA are suspended until further action by the Fifth Circuit on or after March 25, 2025.
The wheels of justice can be slow, but they are churning rapidly now at the Fifth Circuit, where a flurry of activity has taken place following the Department of Justice’s appeal of a nationwide injunction issued against enforcement of the Corporate Transparency Act by a Texas district court.
On December 23, 2024, a motions panel of the Fifth Circuit granted DOJ’s emergency motion for a stay pending appeal, which re-instated CTA registration requirements but briefly extended the deadlines.
However, on December 26,2024, after the plaintiffs’ December 24, 2024, petition for an emergency rehearing, a merits panel of the Fifth Circuit vacated the motions panel’s order that the preliminary injunction be stayed. Bottom line: filing requirements and enforcement of the Corporate Transparency Act are once again stayed—nationwide—until the merits panel decides the appeal. The merits panel re-instated the injunction “…in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments[.]”
An expedited briefing schedule has been issued, which requires submission of the parties’ respective briefs between February 7, 2025 and February 28, 2025. Oral arguments are currently scheduled for March 25, 2025.
Further updates will be provided as new information is available. At present, filing and registration requirements under the CTA are suspended until further action by the Fifth Circuit on or after March 25, 2025.
