Press Release
October 5, 2024
BUSINESS & TRANSACTIONS / CORPORATE & ORGANIZATIONAL GOVERNANCE
Corporate Transparency Act, Part 4: Reporting Requirements Temporarily Suspended, PilieroMazza Client Alert, Meghan F. Leemon, Abigail “Abby” L. Baker, Cole R. Fox
As you may have been following, PilieroMazza previously reported on the requirements of the Corporate Transparency Act (CTA) and the reporting requirements that are associated therewith (Part 1, Part 2, and Part 3). On December 3, 2024, in the case of Texas Top Cop Shop, Inc. et al. v. Garland et al., the U.S. District Court for the Eastern District of Texas issued a preliminary injunction against the enforcement of the CTA that applies nationwide. In its ruling, the court found that the “CTA is likely unconstitutional as outside of Congress’s power.” It follows, then, that a company’s reporting requirement is also “likely unconstitutional for the same reasons.”