US Appeals Court Overturns $16.1B Judgment on Argentina

A U.S. appeals court in New York overturned a 16.1 billion judgment against Argentina on Friday, ruling that the country does not owe compensation to former minority shareholders of the state-run oil company YPF over its 2012 nationalization. The decision by the Second Circuit Court of Appeals, issued in a 2-1 vote, marks a major legal win for Argentina and its President Javier Milei, who has sought to resolve lingering financial disputes from past administrations.

The case stemmed from Argentina's expropriation of a 51 percent stake in YPF from Spain's Repsol for 5 billion during the presidency of Cristina Fernández de Kirchner. The government aimed to renationalize the company, which had been privatized in 1993, citing insufficient domestic oil and gas production. Minority shareholders Petersen Energía Inversora and Eton Park Capital Management argued that the move violated YPF's bylaws, which required a tender offer to all investors, not just Repsol. Backed by litigation funder Burford Capital, the plaintiffs sued in U.S. court because YPF is listed on the New York Stock Exchange.

In 2023, U.S. District Judge Loretta Preska sided with the plaintiffs, awarding 14.39 billion to...