New York joins lawsuit challenging federal company ownership disclosure rollback
FingerLakes1
Last updated: October 28, 2026
New York, alongside 20 other state attorneys general, has filed a lawsuit challenging a U.S. Treasury Department rule. This rule seeks to exempt domestic companies and U.S. owners of foreign companies from federal ownership disclosure requirements. The plaintiffs argue that this rollback weakens the Corporate Transparency Act and hinders crucial investigative and enforcement efforts.
- New York Attorney General Letitia James stated that the new rule undermines the Corporate Transparency Act.
- The exemption from disclosure requirements is seen as a removal of information vital for criminal investigations.
- Furthermore, the reduced transparency is expected to impede tax enforcement efforts.
- The lawsuit aims to block the Treasury Department's rule, asserting its negative implications for transparency and law enforcement capabilities.
- The action by multiple states highlights a broad coalition concerned about the potential consequences of loosening corporate ownership disclosure mandates.
