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Argentina · Litigation · Sovereign Debt · YPF
Argentina secured a significant legal victory as a federal appeals court overturned a $16.1 billion judgment against the country related to the 2012 nationalization of oil company YPF, removing a major financial liability.
The appeals court ruled on Friday, March 27, 2026, that a Manhattan judge had incorrectly decided in favor of former shareholders who claimed damages from Argentina’s seizure of YPF. This lawsuit was notably supported by litigation funder Burford Capital (BURF), which stood to receive a substantial portion of any awarded amount had the original judgment been upheld.
The appeals court's decision definitively removes a multi-billion dollar liability that had been hanging over the country, representing a significant win for the government of President Javier Milei. This outcome provides immediate and substantial financial relief for Argentina, directly improving its fiscal outlook and reducing sovereign risk.
For Burford Capital, the overturning of the judgment means the loss of a potentially massive payout, impacting its future earnings projections and overall valuation.
