Mazzant Injunction
In early December 2024, U.S. District Court for the Eastern District of Texas Judge Amos Mazzant issued a nationwide preliminary injunction (“Mazzant Injunction”) enjoining the CTA and the implementing regulations and declared that reports need not be filed by the filing deadline of January 1, 2025. On December 23, 2024, a three-judge panel of the U.S. Court of Appeals for the Fifth Circuit stayed the preliminary injunction, finding that the injunction would irreparably harm the U.S. government and that businesses who had to file would suffer only minimal harm if required to file. On December 26, 2024, the Fifth Circuit vacated its own order and stayed the injunction to “preserve constitutional issues” pending the Fifth Circuit’s merit panel’s review of the case.
Kernodle Injunction
On January 7, 2025, in another case challenging the CTA, Smith v. U.S. Department of the Treasury, U.S. District Court for the Eastern District of Texas Judge Jeremy Kernodle issued a preliminary injunction (“Kernodle Injunction”), which essentially stayed enforcement of the CTA against the plaintiffs in the case and stayed the January 2025 reporting date nationwide.
Most Recent CTA Actions
On January 23, 2025, the U.S. Supreme Court, acting on the U.S. government’s emergency application, stayed the Mazzant Injunction until the Fifth Circuit makes its final decision and until a petition for a writ of certiorari is filed with the Supreme Court, if one is filed.
On January 24, 2025, FinCEN issued an alert on its website explaining that since the Kernodle Injunction remains in effect, companies may voluntarily file the CTA beneficial ownership reports but are not required to do so—and they will not be liable for not filing.
In the Texas Top Cop Shop case, there is a briefing deadline of February 28, 2025, and oral argument is set for March 25, 2025.
