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19h ago

U.S. Appeals Court Overturns $16.1 Billion YPF Judgment Against Argentina

The decision spares Argentina a payout that officials warned would strain its finances.

FILE - An aerial view shows the YPF-La Plata refinery in Berisso, Argentina, Oct. 30, 2023. (AP Photo/Rodrigo Abd, File)
FILE - A worker fuels up a van at a YPF gas station in Buenos Aires, Argentina, July 14, 2025. (AP Photo/Rodrigo Abd, File)
Image
The headquarters of the Argentine oil company YPF in Buenos Aires

Overview

  • The 2–1 Second Circuit ruling Friday voided the $16.1 billion award to former YPF shareholders and also wiped out a related order to hand over YPF shares.
  • The panel found the investors’ breach‑of‑contract damages claims were not recognizable under Argentine civil and public law.
  • President Javier Milei hailed the outcome, which reduces immediate pressure on a cash‑starved government that had faced a potential bill near $18 billion with interest.
  • Burford Capital, which funded the case and expected a large share of any recovery, saw its U.S. stock drop about 47% after the ruling as it weighed a possible Supreme Court appeal.
  • The case traces to Argentina’s 2012 takeover of a 51% stake in YPF from Repsol without a tender offer to minority holders, with the dispute heard in New York because YPF is listed on the NYSE.