Texas Top Cop Shop, Inc., et al. v. Garland, et al.
On December 3, 2024 the U.S. District Court for the Eastern District of Texas issued a preliminary injunction effective nationwide staying the compliance deadline under the Corporate Transparency Act. The Court, in its decision, found that it is likely the plaintiffs in the case will succeed on the merits of their argument that Congress exceeded its powers in enacting the statute. After examining the plaintiff’s standing, the Court found that imminent harm would occur and that the Government had failed to demonstrate the constitutionality of the statute under both the Commerce Clause and under the Necessary and Proper Clause of the Constitution.
To read more, visit: https://www.sherin.com/business-law/2024/12/09/client-alert-corporate-transparency-act-beneficial-ownership-information-reporting-on-hold/