On December 3, 2024, a District Court in Texas placed a preliminary nationwide injunction on new Beneficial Ownership Information (BOI) reporting requirements imposed by the Corporate Transparency Act (CTA).
In Texas Top Cop Shop, Inc. v. Garland, No. 4:24-CV-478 (E.D. Texas) the judge ruled that “[a] nationwide injunction is appropriate in this case,” which means that “reporting companies need not comply with the CTA’s Jan. 1, 2025, BOI reporting deadline pending further order of the Court.”
Legal commenters have observed that the nature of the Court’s preliminary injunction could mean that the Court may later reconsider that injunction, and that the government is likely to appeal the Court’s decision. Additionally, they note that the inconsistent rulings among the District Courts may mean that the ruling in Texas Top Cop Shop, Inc. v. Garland may not be the final word on the matter. They also question whether the court has the authority to issue a nationwide injunction.
At this time, along with many of our colleagues, we are recommending that our clients be prepared to file, but not complete the filing until more information is known about the impact of this case.