Overview
- Burford Capital and Eton Park asked the Second Circuit on Tuesday for 28 more days to file for rehearing, which would move their deadline to May 8 and requires a prompt ruling from the court.
- The request aims to seek an en banc review, a rare procedure where all active judges of the appeals court reconsider a three-judge panel’s decision.
- A late-March panel ruling vacated the $16.1 billion district-court judgment 2–1, holding that YPF’s bylaws do not create contract claims under Argentine law and that Argentina’s expropriation statute blocks third-party damages suits, with YPF cleared of liability.
- The extension motion cites scheduling conflicts for lead counsel Paul Clement, and the plaintiffs also signal possible next steps that include a U.S. Supreme Court petition or treaty arbitration at the World Bank’s ICSID if rehearing is denied.
- Investors already marked down Burford’s stock by roughly 40% to 50% after the appellate ruling, and the court also noted Argentina’s failure to honor YPF’s privatization promises, a point that could weigh on investor confidence even as legal exposure narrowed.