Jonathan B. Wilson, left, and Anshu Garg, right, of Taylor English Duma. Courtesy photosSupreme Court Takes Up the Corporate Transparency Act: Recent Litigation and Potential Next Steps
Federal courts in the U.S. Court of Appeals for the Fifth Circuit issued a series of back-and-forth orders that left many observers with whiplash. The court orders involved the Corporate Transparency Act, a law that had a looming deadline of Jan. 1, 2025.
January 09, 2025 at 02:45 PM
15 minute read
For most people, the month of December brings holiday preparations and anticipation of the new year. This past December, however, federal courts in the U.S. Court of Appeals for the Fifth Circuit issued a series of back-and-forth orders that left many observers with whiplash. The court orders involved the Corporate Transparency Act, a law that had a looming deadline of Jan. 1, 2025. Before the fireworks rang out on New Year’s Eve, however, the government appealed to the U.S. Supreme Court, seeking what could be a final resolution.
The Corporate Transparency Act
Congress passed the Corporate Transparency Act (CTA) in late 2020 to reduce money laundering and illicit flows of funds by ending the practice of “corporate anonymity.” Prior to the CTA, corporations and limited liability companies (LLCs) could be formed by filing a document with a state office—typically the state’s Secretary of State—providing minimal information about the entity’s purpose and its ownership. Once formed, a corporation or LLC could then open a bank account, engage in transactions, and file tax returns without ever revealing their ownership.
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Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
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