I have just confirmed that the Fifth Circuit Court of Appeals issued an order today
granting the government’s emergency motion to stay the injunction against
enforcement of the Corporate Transparency Act (see my earlier newsletter regarding
the decision of the United States District Court for the Eastern District of Texas,
Sherman Division, in Civil Action No. 4:24-CV-478, which signed and filed a
Memorandum Opinion and Order on December 3, 2024, which put into place a
nationwide injunction).
Thank you to Austin Bramwell, and his associate, Molly Schiff, at Milbank for calling
this to my attention.
Part of the Court’s order reads as follows:
“No. 24-40792
“Before Stewart, Haynes, and Higginson, Circuit Judges.
“Per Curiam:
“The Corporate Transparency Act (“CTA”) obliges certain
nonexempt companies to report the identity of their beneficial owners and
applicants for incorporation. 31 U.S.C. § 5336. On December 3, 2024—less
than one month before the crucial January 1, 2025 reporting deadline—the
district court granted Plaintiffs-Appellees’ (the “Businesses”) motion for a
preliminary injunction and entered a nationwide injunction enjoining the
CTA and the corresponding Reporting Rule. Id.; 31 C.F.R. § 1010.380. The
district court concluded that both are unconstitutional and issued nationwide
injunctions against each, despite no party requesting it do so and despite
every other court to have considered this issue tailoring relief to the parties
before it or denying relief altogether. ”
…and toward the end of the order, the Fifth Circuit said…
“When balancing this harm against the public’s urgent interest in
combatting financial crime and protecting our country’s national security,
equity favors a stay. As the government explains, and the district court
recognizes, a last-minute nationwide preliminary injunction would
undermine our ability to push other countries to reform their anti-money
laundering and counterterrorism regimes and to address the most
fundamental gap in our own regime.
“Accordingly, the government has demonstrated that a stay is
warranted. See Nken, 556 U.S. at 434.
“IT IS ORDERED that the government’s emergency motion for a
stay pending appeal is GRANTED. IT IS FURTHER ORDERED that
this appeal is EXPEDITED to the next available oral argument panel.”
SO YOU NOW HAVE TO FILE YOUR BOI REPORTS TIMELY