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Alert: CTA Temporarily Enjoined

On December 3, 2024, the US District Court for the Eastern District of Texas issued a nationwide preliminary injunction against enforcement of the Corporate Transparency Act and its reporting rule. In the court’s opinion and order in Texas Top Cop Shop, Inc., et al. v. Merrick Garland, Attorney General of the United States (Case No. 4:24-cv-478), the court concluded that a nationwide injunction was necessary to provide “meaningful relief” because one of the plaintiffs, the National Federation of Independent Business, represents members nationwide. Consistent with the court’s ruling, the January 1, 2025 compliance deadline has been temporarily halted until further ruling by the court.

Scopelitis will continue to monitor this litigation and its implications on the future of the CTA and will provide updates as information becomes available.

A copy of the district court’s order issuing the nationwide temporary injunction can be found here.

If you have questions, please contact Katie Feary-GardnerJordan Yu, or J.D. Robinson.

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News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.

Alert: CTA Temporarily Enjoined

On December 3, 2024, the US District Court for the Eastern District of Texas issued a nationwide preliminary injunction against enforcement of the Corporate Transparency Act and its reporting rule. In the court’s opinion and order in Texas Top Cop Shop, Inc., et al. v. Merrick Garland, Attorney General of the United States (Case No. 4:24-cv-478), the court concluded that a nationwide injunction was necessary to provide “meaningful relief” because one of the plaintiffs, the National Federation of Independent Business, represents members nationwide. Consistent with the court’s ruling, the January 1, 2025 compliance deadline has been temporarily halted until further ruling by the court.

Scopelitis will continue to monitor this litigation and its implications on the future of the CTA and will provide updates as information becomes available.

A copy of the district court’s order issuing the nationwide temporary injunction can be found here.

If you have questions, please contact Katie Feary-GardnerJordan Yu, or J.D. Robinson.

News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.