Fifth Circuit Reverses Course, Reinstates Nationwide Injunction of CTA and Reporting Rule

Yesterday, the U.S. Court of Appeals for the Fifth Circuit did an about face and issued an order reinstating a federal district court's nationwide preliminary injunction that prohibits the government (FinCEN) from enforcing the Corporate Transparency Act ("CTA") and its implementing rule. Citing the need to "preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments," the order vacated a portion of a December 23 motions panel's decision that stayed (lifted) the district court's injunction. Notably, beyond this appeal, three other federal appellate courts are hearing challenges to the constitutionality of the CTA – the Fourth, Ninth, and Eleventh Circuits.

Edit: This appeal is on an expedited schedule, with briefs due February 7, 2025 (Government), February 21, 2025 (Plaintiff-Appellees), and February 28, 2025 (Government). The court set oral argument for 10:00am on March 25, 2025 in the En Banc Courtroom of the Wisdom Courthouse in New Orleans.

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#govcon