Update: Fifth Circuit Reverses Decision Lifting Injunction on Corporate Transparency Act Enforcement

On December 26, 2024, the Fifth Circuit Court of Appeals reversed its December 23, 2024 decision (see prior Alert here) lifting the nationwide injunction that was imposed on December 3, 2024 (see prior Alert here), preventing enforcement of the Corporate Transparency Act and the rules thereunder.

The December 23, 2024 decision was made by a motions panel of the Fifth Circuit, and provided for an expedited appeal for the next available oral argument panel. The merits panel of the Fifth Circuit received the appeal and reversed the motion panel’s decision in order to “preserve the constitutional status quo,” indicating that the Fifth Circuit likely believes that the Corporate Transparency Act is unconstitutional.

For now, there is no need to comply with the Corporate Transparency Act by the January 13, 2025 deadline referred to in our last Alert, as once again, the government is enjoined from enforcing the Corporate Transparency Act.

Our Investment Funds & Advisers and Corporate lawyers – Brian Forman, Randi Mason, Tracy Sigal and Michael Wasenius – will continue to monitor these unusual proceedings and provide updates in real time.