US Court Voids $16.1 Billion YPF Judgment Against Argentina

A federal appeals court in the United States has struck down a $16.1 billion judgment against Argentina related to the 2012 seizure of the oil company YPF Sociedad Anónima. The decision, issued by the 2nd U.S. Circuit Court of Appeals in Manhattan, marks a major legal victory for the government of President Javier Milei as it seeks to address the nation's long-standing economic challenges.

The case originated from the nationalization of YPF, which led to a lower court awarding $16.1 billion in September 2023 to former shareholders Petersen Energia Inversora and Eton Park Capital Management. During the appellate process, the three-judge panel questioned the appropriateness of the case being heard in the American legal system, noting that the underlying events and alleged legal violations took place within Argentina.

Much of the financial award would have been collected by Burford Capital Limited, a litigation funding firm headquartered in the United Kingdom. By the time of the oral arguments in October, the total judgment had reportedly increased to $18 billion due to interest. The reversal of this judgment provides significant financial relief to the Argentine state, which has been embroiled in this complex legal dispute for over a decade.