Client Alert: Holiday Surprise: Nationwide Injunction Halts Corporate Transparency Act Enforcement

Authored by Corporate Practice Group partner Lorren Patterson and corporate attorneys Paul-Kalvin Collins and Japera Parker

Introduction

The Corporate Transparency Act (“CTA”) requires most companies—except for certain exempt entities—to disclose their ownership details to the Financial Crimes Enforcement Network (“FinCEN”). A looming January 1, 2025 reporting deadline for entities formed prior to January 1, 2024 had many companies and compliance departments on edge. But mere weeks before this deadline, a federal court issued a nationwide injunction, preliminarily enjoining the CTA’s enforcement and staying reporting requirements. This temporary relief gives businesses that have yet to submit their information to FinCEN a welcome pause, although this could change rapidly depending on the government’s next steps.

In this article, we break down the outcome of the ruling and explain how it could affect your business, whether you have already filed your information with FinCEN or were preparing to do so by the end of the year.

Texas Federal Court Steps in and Gives a (Temporary) Holiday Gift

On December 3, 2024, in Texas Top Cop Shop, Inc., et al. v. Garland, et al., Case No. 4:24-cv-478 (E.D. Tex.), the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction temporarily prohibiting the enforcement of the CTA and the FinCEN Reporting Rule.

The CTA and Reporting Rule require domestic entities created by the filing of a document with a secretary of state and foreign entities that have registered to do business in the United States (“Reporting Companies”) to file a Beneficial Ownership Information (“BOI”) Report with FinCEN, identifying personal information about the individuals who directly or indirectly own a certain percentage or otherwise control the company, subject to certain exemptions from reporting.

The Court’s decision temporarily halts the CTA’s reporting requirements and enforcement mechanisms for all Reporting Companies across the United States, providing a potential reprieve to approximately 32.6 million entities that were preparing to comply with the January 1, 2025 deadline. Read more.

BG Named to Best Law Firms 2025 List

Bailey Glasser has been recognized by Best Law Firms® across 45 categories on both nationwide and regional/citywide tiers. Our firm has worked tenaciously on behalf of our clients for 25 years, and we never take your good words for granted. Thank you for recognizing our work for another year.

Below please find a full list of our 2025 rankings.

NATIONAL TIER

Litigation – ERISA (Tier 3)
Mass Tort Litigation / Class Actions – Plaintiffs (Tier 1)
Mergers & Acquisitions Law (Tier 3)
Securities / Capital Markets Law (Tier 3)

METROPOLITAN TIER

Charleston, West Virginia
Banking and Finance Law (Tier 3)
Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law (Tier 3)
Bet-the-Company Litigation (Tier 1)
Commercial Litigation (Tier 1)
Criminal Defense: White-Collar (Tier 1)
Energy Law (Tier 2)
Insurance Law (Tier 2)
Litigation – Banking & Finance (Tier 1)
Litigation – Bankruptcy (Tier 1)
Litigation – Insurance (Tier 1)
Litigation – Labor and Employment (Tier 1)
Mass Tort Litigation / Class Actions – Plaintiffs (Tier 1)
Personal Injury Litigation – Defendants (Tier 1)
Personal Injury Litigation – Plaintiffs (Tier 1)
Product Liability Litigation – Plaintiffs (Tier 1)

Washington, D.C.
Banking and Finance Law (Tier 3)
Bet-the-Company Litigation (Tier 3)
Business Organizations (including LLCs and Partnerships) (Tier 3)
Civil Rights Law (Tier 2)
Commercial Litigation (Tier 1)
Corporate Law (Tier 3)
Criminal Defense: White-Collar (Tier 1)
Employee Benefits (ERISA) Law (Tier 1)
Energy Law (Tier 2)
Litigation – ERISA (Tier 2)
Mergers & Acquisitions Law (Tier 1)
Securities / Capital Markets Law (Tier 3)

For more rankings please follow this link.

Client Alert: Protecting Children Online on Universal Children’s Day

Today is Universal Children’s Day, celebrated on November 20th each year to promote international togetherness, awareness among children worldwide, and improving children’s welfare.

In the article, “Protecting Children Online on Universal Children’s Day,” Sharon Iskra, Bailey Glasser partner and leader of our Institutional Abuse & Neglect team, encourages us to celebrate by reflecting on all the wonders of childhood: the innocence, joy, curiosity, and energy, but realizing the hazards to today’s children, especially online, where children can be trapped and manipulated through child sexual abuse materials (CSAM).

“It’s up to every one of us to protect kids, whether they’re our own or those we encounter through work or friends. Child safety IS your business – and at Bailey Glasser, it’s our business too,” Sharon writes.

One of the best things we can do to protect a child is to be a genuinely safe person of trust for them. Practice these fundamentals as appropriate in the context of your relationship with a child:

1. Parents/caregivers, talk to your children regularly and in age-appropriate ways about online safety.
2. Empower children, teach them to trust their instincts and repeat to them that if something doesn’t seem right or frightens them, take it to a safe adult right away.
3. Teach body integrity and self-worth.
4. Remind children that adults are supposed to protect children, and children are supposed to be children.

Read the full article to learn more tips about how to be a person of trust for children, how to protect them from CSAM, and for nationally sourced resources on how to begin talking to your child.

Learn more information on Sharon Iskra by visiting here.

#UniversalChildrensDay #CSAM #Onlinesafety #Abuse #Neglect #BaileyGlasser #ClientAlert

Partner Michael Hawthorne to Speak on Estate and Business Succession Planning at Strafford CLE Webinar

Michael Hawthorne, partner in Bailey Glasser’s Corporate Practice Group, will be a panelist at Strafford’s CLE Webinar titled, “Estate and Business Succession Planning: Estate and Tax Considerations, Planning Vehicles, Best Practices” on Friday, November 15, 2024, sharing his invaluable experience in leveraging his multi-disciplinary approach in how to grow and successfully implement succession plans.

Mr. Hawthorne is nationally recognized in the areas of corporate law, mergers and acquisitions (M&A), and securities law. He has extensive experience working on securities matters and helps his clients comply with related laws and regulations, and also works with clients involved in complex commercial litigation. Mr. Hawthorne has extensive experience in working with tax laws and how to structure companies and deals to help work with and maximize tax benefits and savings (e.g., tax-free transactions, 1202 benefits, partnership taxation, like-kind exchanges, tax incentives and financings).

Learn more and register for this event here.

Partner Mark Boyko Wins Seat in Missouri House of Representatives

Congratulations to Bailey Glasser partner and ERISA litigator Mark G. Boyko on his election to the Missouri House of Representatives for District 90. Running on a campaign supporting healthcare, public education, jobs, and protecting the environment, Mark boldly departed from traditional political campaigning by reallocating campaign funds to benefit local nonprofits rather than subjecting voters to junk mail or robocalls.

Mark is a generous and compassionate public servant (as well as a father of two and busy lawyer): he is a member of the Kirkwood School Board and also serves on the board of the St. Louis Area Diaper Bank and the Friends of the Kathy J. Weinman Center, St. Louis County’s safe haven for victims of domestic abuse.

Upon winning his election, Mr. Boyko commented: “I appreciate everyone who voted, volunteered, or put their name on a ballot, regardless of party, for continuing to believe our common good is worth their investment. I am confident in Missouri’s bright future and look forward to working toward it.”

Mark’s practice at Bailey Glasser focuses on finding hidden and excessive fees charged by Wall Street firms to 401(k) plan participants and protecting Employee Stock Ownership Plans (ESOPs). Since 2007, his cases have returned over $500 million to hard-working workers and retirees, and his work has helped 401(k) and 403(b) fees to drop $10 billion per year, helping all workers meet their retirement goals.

To learn more about Mark, please visit his firm bio here.

To learn more about our nationally recognized ERISA practice, please visit our ERISA, Employee Benefits and Trusts Litigation Practice page.

BG Welcomes Three New Lawyers to Washington, D.C. Office

Bailey & Glasser, LLP has added three new lawyers to the firm’s Washington, D.C. office. Hallie Arena is the newest member of the Commercial & Environmental Litigation practice group, Allison Bruff has joined the Consumer Litigation practice group, and Japera Parker has joined the firm’s Corporate practice group.

Hallie Arena brings valuable courtroom and legal writing experience in criminal matters and complex civil litigation, having completed a federal clerkship in the United States District Court for the Southern District of West Virginia with the Honorable Judge Joseph R. Goodwin and interned in the same court with Judge Frank W. Volk. As a West Virginia University College of Law graduate, she was a member of the order of the coif and served as the Executive Notes Editor for the West Virginia Law Review. Hallie was also the president of the Sports and Entertainment Law Society, drawing on her prior work for two professional basketball teams, the Atlanta Hawks and the Los Angeles Clippers. While in law school, Hallie also participated as a student practitioner in the United States Supreme Court Clinic.

Allison Bruff brings to the firm considerable experience in the federal judiciary. Before joining Bailey Glasser, she served as a Supreme Court Fellow at both the U.S. Sentencing Commission and the Office of the Counselor to the Chief Justice of the United States. She also worked in the Office of the General Counsel at the Administrative Office of the U.S. Courts, advising the Judicial Conference’s Advisory Committee on Federal Rules of Civil and Criminal Procedure. Additionally, Allison’s experience includes federal clerkships with the Honorable Judge Julia Smith Gibbons of the United States Court of Appeals for the Sixth Circuit and for the Honorable Judge David G. Campbell during his tenure as Chair of the Judicial Conference Committee on Rules of Practice and Procedure. Allison graduated summa cum laude from the University of Mississippi School of Law.

Japera Parker brings a unique background to Bailey Glasser. Her prior legal experience includes positions at major technology companies and top technology/life science law firms. Japera is deeply committed to her community, focusing on creating opportunities for female and underrepresented founders to gain access to essential capital and quality legal guidance, drawing on her personal experience as an entrepreneur for three early-stage companies in the areas of real estate and fashion. Japera is a graduate of the University of Maryland Francis King Carey School of Law, graduating cum laude with certifications in both business law and intellectual property law. Before law school, Japera was an educator and taught middle and high school English before becoming a school director and teacher coach.

We’re excited to welcome our new lawyers to the Bailey Glasser team and look forward to the valuable perspectives and experiences they bring to our firm.

#welcome #corporate #transactional #litigation #consumer #commercial #environmental #baileyglasser

Bailey Glasser’s Appellate Win Against NBA Gains National Media Attention

Bailey Glasser’s recent appellate victory in Salazar v. NBA is garnering national media attention, with new coverage by Bloomberg Law and Reuters. Partners Michael Murphy and Joshua Hammack achieved a landmark win in the Second Circuit, defending the right of consumers to control information about their video-watching history under the federal Video Privacy Protection Act (VPPA).

“They’ve got two choices—they either don’t use the pixel, or they get consent from their consumer,” partner Michael Murphy told Bloomberg Law regarding the importance of the recent Second Circuit decision requiring clear consent in data-handling practices.

At the heart of the case, Mr. Salazar, a subscriber to the NBA’s newsletter, alleged the NBA unlawfully shared his video-watching history with Facebook. A lower court dismissed Salazar’s VPPA claim based on its view that he didn’t meet the statutory definition of a “consumer.” The Second Circuit, however, vacated this decision, holding the VPPA protects anyone who subscribes to any “goods or services” from a video provider—even to non-audiovisual goods or services, like the online newsletters at issue in this case. The Second Circuit’s interpretation, which is the first in the country from a federal appellate court, sets a powerful precedent for future cases.

To Reuters, Joshua Hammack, lead appellate counsel who argued the appeal, described the decision’s impact. After noting that businesses profiting from targeted-advertising regimes that violate consumers’ privacy interests might have preferred a different outcome, Hammack said: “The Second Circuit confirmed Congress said what it meant and meant what it said. The decision is a slam dunk for consumers hoping to keep their personal information private.”

The case is Salazar v. National Basketball Association, Case number 23-1147, in the U.S. Court of Appeals for the Second Circuit. To learn more and to read the Court’s full decision, visit here.

To learn more about Josh Hammack, visit here.

To learn more about Michael Murphy, visit here.

Monumental Settlement in Blue Cross Blue Shield Antitrust Case


Monumental. The largest antitrust settlement in U.S. healthcare history, $2.8 billion, was announced on October 14, 2024, by the Provider side settlement team in the Blue Cross Blue Shield MDL, a long-running antitrust lawsuit representing healthcare providers nationwide. This landmark settlement was negotiated over several years by a dedicated committee, including Bailey Glasser partners Michael Murphy and Eric Snyder.

The settlement involves all Blue Cross and Blue Shield entities across the country and includes a $2.8 billion cash payment into a settlement fund, as well as investments by the Blues of hundreds of millions of dollars in system improvements for the benefit of providers.

What Will The Settlement Achieve?

The settlement aims to resolve claims that the Blues violated antitrust laws by dividing markets and fixing prices.

It also introduces important changes to the BlueCard Program, which will:

Improve how claims are processed
Enhance payment methods to providers
Reduce administrative burdens and inefficiencies
Benefits For Healthcare Providers

The settlement provides healthcare providers with:

More opportunities to contract with the Blues
Reduced administrative burdens
Increased efficiency in claims processing and payments
The Blue Cross and Blue Shield plans, along with the Blue Cross Blue Shield Association, will be held accountable by an appointed Monitoring Committee for five years after the settlement’s effective date, following the Court’s final approval. The Provider Plaintiffs formed a work group comprising various types of providers, such as representatives from large healthcare systems, teaching hospitals, rural hospitals, physicians, ancillary providers, and medical and hospital associations which gave meaningful guidance throughout the process.

Key Contributors & Next Steps

Bailey Glasser’s Michael Murphy and Eric Snyder also played key roles in the discovery phase, uncovering critical documents and testimony that led to this landmark settlement.

The Court is expected to review the Motion for Preliminary Approval in November. A formal notice will be sent to all class members at a later date determined by the Court.

Bailey Glasser Recognized in 2025 Edition of Benchmark Litigation

Bailey Glasser lawyers have been recognized in Benchmark Litigation’s 2025 “Definitive Guide to America’s Leading Law Firms and Attorneys.” Congratulations to partners Ben Bailey, Brian Glasser, Greg Haddad, Jonathan Marshall, Eric Snyder, Stephen Sorensen, Benjamin Schwartzman, and Brian Swiger for being recognized for their litigation excellence.

Founding partner Brian Glasser is also honored as one of the nation’s Top 100 Trial Lawyers.

The firm appreciates being ranked “Highly Recommended” in West Virginia, where Bailey Glasser was founded in 1999.

This year marks our 25th anniversary, and we’re grateful to our clients who, for all these years, have trusted us with their high-stakes litigation and corporate matters. We appreciate Benchmark Litigation and everyone who participated in the 2025 selection process and warmly congratulate all lawyers across the country who have received this recognition.

Learn more about Bailey Glasser’s 2025 Benchmark Litigation recognitions here.

#BenchmarkLitigation #LitigationStars #TopTrialLawyers #BaileyGlasser #Thankyou

BG Team Secures Slam Dunk Victory at Second Circuit Against NBA

BG partners Joshua Hammack and Michael Murphy secured an important and precedent-setting appellate victory for consumer privacy yesterday. The law at issue—the federal Video Privacy Protection Act—was intended to prevent certain companies from disclosing consumers’ video-watching preferences. And the law broadly protects “consumers,” which it defines to include “any renter[s], purchaser[s], or subscriber[s] of goods or services from a video tape service provider.” But, in August 2023, a district court in the Southern District of New York dismissed Mr. Salazar’s complaint alleging the NBA violated the VPPA by sharing his video-watching history with Facebook without his consent. It reasoned he was not a “consumer” because he subscribed only to the NBA’s online newsletter, and not to any of its audio-visual goods or services.

The Second Circuit flatly rejected this analysis. It held: “The phrase ‘goods or services’ in the VPPA is not cabined to audiovisual goods or services, but also reaches the NBA’s online newsletter.” Indeed, the term “consumer” “should be understood to encompass a renter, purchaser, or subscriber of any of the provider’s ‘goods or services’—audiovisual or not.” Because Mr. Salazar had alleged he subscribed to the newsletter, then, he was a statutory consumer entitled to the VPPA’s privacy protections.

Joshua Hammack, lead appellate counsel who argued the appeal, had this to say: “We’re pleased the Second Circuit smacked the NBA’s arguments off the backboard. The opinion boils down to this: The VPPA says what it says, and the district court’s attempt to rewrite it was improper.” Michael Murphy added: “Not much more to say than it’s a slam dunk for consumer privacy.”

Bailey Glasser’s litigators have been fighting to protect consumers in privacy law cases like this one. Our lawyers are nationally recognized for their work, including Mr. Murphy’s Band One Chambers & Partners ranking for his D.C. litigation practice, and Mr. Hammack has been recognized by Lawdragon as a 500 X – The Next Generation for his commercial litigation and appellate work, and as a Benchmark Litigation, U.S. 2024 Benchmark 40 & Under Litigator in Washington, D.C.

For more about the win, please visit this link.

%d bloggers like this: