News & Analysis as of

Commerce Clause Constitutional Challenges

Husch Blackwell LLP

Eleventh Circuit to Review Constitutionality of Corporate Transparency Act

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The Corporate Transparency Act (CTA), a pivotal piece of legislation aimed at preventing financial crimes, is under constitutional scrutiny. We previously reported that on March 1, 2024, the U.S. District Court for the...more

Smith Anderson

The Corporate Transparency Act - Case Law Update and Determining Beneficial Owners

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As discussed in our prior two alerts (found here), effective as of Jan. 1, 2024, the Corporate Transparency Act and rules issued thereunder by the Financial Crimes Enforcement Network (“FinCEN”) (collectively, the “CTA”)...more

Bilzin Sumberg

The Corporate Transparency Act (CTA) Is Unconstitutional—But Only for Some Companies

Bilzin Sumberg on

On Friday, March 1, 2024, a federal judge in Alabama ruled that the Corporate Transparency Act is unconstitutional. See NSBU v. Yellen, No. 5:22-cv-1448, 2024 BL 69366, 2024 Us Dist Lexis 36205 (N.D. Ala. Mar. 01, 2024). Here...more

Whitman Legal Solutions, LLC

Court Decision Doesn’t Affect Corporate Transparency Act Requirements for Most Companies and Real Estate Investors

On March 1, 2024 a United States District Court in Alabama held in National Small Business United dba National Small Business Association v. Yellen (NSBA Case) that the Corporate Transparency Act (CTA) is unconstitutional. ...more

Cadwalader, Wickersham & Taft LLP

Court Finds Corporate Transparency Act Unconstitutional and Unenforceable as to NSBA Members

On March 1, 2024, the U.S. District Court for the Northern District of Alabama ruled that the Corporate Transparency Act (“CTA”) is unconstitutional. The CTA requires many U.S. entities to disclose their individual beneficial...more

Falcon Rappaport & Berkman LLP

Constitutional Clash: U.S. District Court Landmark Decision Declares the Corporate Transparency Act Unconstitutional

In 2021, Congress passed the Corporate Transparency Act (CTA), which will be administered and enforced by the Financial Crimes Enforcement Network (“FinCEN”) of the United States Treasury Department, in an effort to implement...more

UB Greensfelder LLP

Corporate Transparency Act Update

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On March 1, 2024, the U.S. District Court for the Northern District of Alabama, Northeastern Division published an opinion finding that the Corporate Transparency Act (the “CTA”) is unconstitutional as exceeding the U.S....more

Venable LLP

Alabama Federal District Court Declares CTA Unconstitutional: Here's What You Need to Know

Venable LLP on

The Corporate Transparency Act (CTA), which became effective on January 1, 2024, was enacted to combat the use of shell companies by those seeking to evade anti-money laundering laws and economic sanctions. ...more

Mayer Brown

Federal Court Declares the Corporate Transparency Act Unconstitutional

Mayer Brown on

On March 1, 2024, the US District Court for the Northern District of Alabama declared the Corporate Transparency Act (“CTA”) unconstitutional, and suspended its enforcement against the plaintiffs in that case. While most...more

Verrill

Constitutional Challenge to the CTA

Verrill on

Recent Development - On March 1, 2024, a federal court in Alabama ruled that the Corporate Transparency Act violates the U.S. Constitution and is unenforceable on its face. The decision (NSBU v. Yellen) is highly...more

Benesch

Those Subject to the Corporate Transparency Act Should Continue to Comply with its Requirements

Benesch on

Don’t panic! It is business as usual for those subject to the Corporate Transparency Act (the “CTA”). On March 1, 2024, Judge Liles C. Burke of the District Court for the Northern District of Alabama held the CTA...more

Holland & Knight LLP

Federal District Court Finds Corporate Transparency Act Unconstitutional

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The National Small Business Association (NSBA) and a small business owner (also a member of the NSBA) filed a lawsuit on Nov. 15, 2022, in the U.S. District Court for the Northern District of Alabama challenging the...more

Miller Canfield

Cracks in the Corporate Transparency Act?

Miller Canfield on

On March 1, 2024, an Alabama federal court declared the Corporate Transparency Act (CTA) unconstitutional—but only enjoined its enforcement as to the specific litigants. As described in our prior alerts, the CTA...more

Saul Ewing LLP

Corporate Transparency Act (CTA) Update: Federal Judge Rules CTA Unconstitutional

Saul Ewing LLP on

The decision of the Federal District Court for the Northern District of Alabama in the case of National Small Business United v. Yellen, announced on Friday, March 1, 2024, has created uncertainty for both reporting companies...more

BakerHostetler

Corporate Transparency Act Declared Unconstitutional: How Does This Impact Your Company?

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On Mar. 1, 2024, a federal district judge in Alabama ruled that the CTA is unconstitutional, holding that it exceeds the powers granted to Congress by the U.S. Constitution. The ruling permanently enjoins FinCEN from...more

Troutman Pepper

Lawsuit Highlights the Complexity of Regulating the Intrastate Use of Marijuana

Troutman Pepper on

One of the most interesting aspects of marijuana law and policy in the U.S. is its tendency to strike at our most foundational democratic principles. In 2005, the U.S. Supreme Court held, in Gonzales v. Raich, that Congress...more

McDermott Will & Emery

Following Maryland’s Lead? We Guess Everyone Wants to Go to Court. Icy Challenges to Nebraska’s Advertising Services Tax Act Start...

McDermott Will & Emery on

Nebraska Governor Jim Pillen’s ambitious plan to provide $2 billion in property tax relief via an increase in the sales tax rate and an expansion of the sales tax base is stirring significant debate. Part of his proposal is...more

Benesch

Supreme Court Expands General Jurisdiction in Mallory v. Norfolk Southern Railway Co., Marking Departure from “At Home”...

Benesch on

The test for personal jurisdiction, which asks whether a defendant can be compelled to litigate in a particular state, has been extensively developed over the past several decades, and notably refined in the last fifteen...more

Katten Muchin Rosenman LLP

Mallory v. Norfolk Southern Railway Co.: Supreme Court Recognizes Existence of Consent-Based Theory of General Personal...

The US Supreme Court recently issued a decision in Mallory v. Norfolk Southern Railway Co holding that a Pennsylvania statute requiring corporations to "consent" to suit in Pennsylvania courts in order to register to do...more

Lathrop GPM

Supreme Court Holds Corporation Waived Due Process Rights and Consented to General Personal Jurisdiction by Registering to do...

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On June 27, 2023, the United States Supreme Court held in Mallory v. Norfolk Southern R. Co., No. 21-1168, 2023 WL 4187749, that Norfolk Southern submitted to the state of Pennsylvania’s general jurisdiction (that is, being...more

Foley & Lardner LLP

Now What: Recent Supreme Court Decision Opens the Door for Expanded Corporate Personal Jurisdiction

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Here at Foley, we routinely represent companies, whether manufacturers, distributors, service providers, or others that are, by necessity, registered to do business in most or all of the fifty states. For years, the U.S....more

Adams and Reese LLP

Mallory v. Norfolk Southern Railway Co. Likely to Spawn New Attempts at Litigation Tourism

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Tag, You’re It! SCOTUS Ruling Against Norfolk Southern Extends Reach of Personal Jurisdiction Upon Corporate Defendants - A plurality of the United States Supreme Court recently issued a ruling that will likely permit...more

Mintz

Losing Your International Shoe: Corporations May Waive Contacts-Based Personal Jurisdiction in Consent-by-Registration States

Mintz on

Late last month the Supreme Court of the United States opened the door to a potential sea change in personal jurisdiction over corporate entities. In Mallory v. Norfolk Southern Railway Company, the Court held that any...more

Harris Beach PLLC

Mallory v. Norfolk Southern Railroad: U.S. Supreme Court’s Decision on Jurisdiction

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The United States Supreme Court reversed the Pennsylvania Supreme Court’s decision in Mallory v. Norfolk Southern Railway Co., finding Pennsylvania’s consent to jurisdiction by corporate registration unconstitutional in a 5-4...more

Burr & Forman

Can You Be Sued In Any State? The Supreme Court’s Decision in Mallory v. Norfolk Southern Suggests So

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A recent (and surprising) ruling of the United States Supreme Court may allow businesses to be sued in states in which they have little connection. The United States Supreme Court, split 5-4 (Gorsuch, Thomas, Alito, Sotomayor...more

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