CLIENT ALERT SADIS & GOLDBERG LLP
DearClient,
Nowthattheendofyearholidaysareover,wewantedtotakeamomenttoupdateyouonthecurrent stateofthebeneficialownershipreportingrequirementsoftheCorporateTransparencyAct(“CTA”).As oftoday’sdate,thereportingrequirementsremainpaused.
Asdiscussedinourpreviousclientalertonthistopic,onDecember23,2024,amotionspaneloftheU.S. CourtofAppealsfortheFifthCircuitgrantedastayofthedistrictcourt’spreliminaryinjunctionenteredin thecaseofTexasTopCopShopv.Garland,revivingtherequirementforreportingcompaniestofile beneficialownershipinformationundertheCTA.However,onDecember26,2024,aseparatemerits paneloftheFifthCircuitissuedanordervacatingtheCourt’sstayofthepreliminaryinjunction.Asa result,theJanuary13,2025deadlinespublishedbyFinCENinresponsetotheFifthCircuit’sinitialstayare currentlynotineffectand,therefore,reportingcompaniesarenotrequiredtofilebeneficialownership informationwithFinCENatthistime.
Thissituationisdynamic,and,asofnow,itisunclearifthebeneficialownerfilingrequirementwillsurvive appellatereview.However,FinCENhassuggestedthatbeneficialownersmaystillcomplywiththeCTA byvoluntarilyfilingtheirbeneficialownershipinformation.Ifyouwouldliketomoveforwardwithyour beneficialownershipreports,pleasereachouttoustodiscuss.
IfSadiswaspreviouslyassistingyouwithyourCTAreportingwewillbeintouchshortly.Wewillcontinue tomonitorthissituationandupdateourclientsontheirCTAobligationsinatimelymanner.Ifyouhave anyquestionsaboutyourCTAfilingobligations,pleasefeelfreetocontactDavidFitzgeraldat 212-573-8428ordfitzgerald@sadis.com,MarkStreflingat212-573-8159ormstrefling@sadis.com,or CameronPosillicoat212-573-8151orcposillico@sadis.com.