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Courthouse Rock? Injunction Junction

The Supreme Court has stayed one of the nationwide injunctions barring implementation of the Corporate Transparency Act. Its decision this week in McHenry v. Texas Top Cop Shop, Inc. means that the statute itself is no longer enjoined on a nationwide basis. The high court’s decision has no immediate effect on a second injunction, in a separate case, that currently bars the Treasury from enforcing the CTA against the particular plaintiffs, but also bars the government from implementing the regulations to carry out the statute (including, for example, filing BOI reports) on a nationwide basis. Smith v. United States, 2025 WL 41924 (E.D. Tex. 2025). A FINCEN release today confirms that the government remains barred from requiring reporting.

As of this writing, the government has not appealed the Smith decision, but the time period to appeal has not yet run.

Additional Observation: The Supreme Court decision upholding the legislation requiring divestment of Tik Tok on national security grounds may impact the litigation over CTA.

Clients with additional questions can contact PRK Livengood’s CTA compliance team.

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