U.S. court overturns $16B ruling against Argentina in YPF case
New York appeals court annuls the multimillion‑dollar judgment tied to YPF’s 2012 expropriation.
Argentina secured a major legal victory after the U.S. Court of Appeals in New York overturned a ruling that had ordered the country to pay more than $16 billion over the expropriation of YPF. The appeals court decision invalidates the earlier judgment handed down by Judge Loretta Preska, who had issued one of the largest monetary rulings ever against a sovereign state in a U.S. court.
The decision is seen in Buenos Aires and Washington as a decisive shift in a case that has stretched over a decade and carried substantial financial risk for Argentina. While additional appeals may still arise, the ruling represents a substantial milestone for the country’s legal strategy. The U.S. Department of Justice had recently expressed support for Argentina’s position, strengthening the government’s outlook ahead of the appeals court decision.
The case was driven by Burford Capital, which had acquired the litigation rights from minority shareholders who argued they were harmed by Argentina’s 2012 takeover of YPF. Burford stood to be the primary beneficiary of the now‑overturned judgment.
The dispute traces back to the expropriation of the oil company during Cristina Fernández de Kirchner’s presidency. The government passed a congressional law to nationalize YPF and compensated the majority shareholder, Repsol. However, minority shareholders argued that the state failed to make a public offer to all investors, as required under YPF’s bylaws. Many of those shareholders’ claims were later purchased by Burford Capital, which initiated the lawsuit in U.S. courts. The legal battle continued for more than ten years, becoming the largest foreign case faced by Argentina.
MobilityPlaza's take
Although YPF spent years as part of the lawsuit, it was ultimately cleared by Judge Preska in 2023, a decision that the appeals court has now upheld after Burford challenged it. The appeals court decision marks a turning point, sharply reducing Argentina’s legal exposure and improving market sentiment around the company as it continues seeking investors for its Vaca Muerta energy development. YPF shares climbed as much as 7% last Friday, reflecting renewed optimism and strengthening the company’s positioning in global energy markets.
