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NEW YORK, March 27 (Reuters) – A U.S. appeals court on Friday struck down a $16.1 billion judgment against Argentina for seizing control of state-owned oil company YPF in 2012, a victory for Argentine President Javier Milei as he tries to stabilize the country’s long-strained economy.
The decision was issued by the 2nd U.S. Circuit Court of Appeals in Manhattan.
Argentina had been seeking to overturn the $16.1 billion award in September 2023 by a lower court judge to former YPF shareholders Petersen Energia Inversora and Eton Park Capital Management for alleged losses tied to YPF’s nationalization.
During oral arguments on October 29, the three-judge appeals court panel had questioned why the case was in the United States, given that the underlying activity occurred in Argentina and involved alleged violations of Argentine law.
Burford Capital, a UK-based company that funds the litigation, would collect much of any award that survives legal challenges. The award had grown to $18 billion with interest when the appeal was argued, a lawyer for Argentina said.
(Reporting by Jonathan Stempel in New York)