The Second Circuit Court of Appeals of New York has ruled again in the YPF trial and rejected an extraordinary measure requested by Burford Capital, the main plaintiff against Argentina.
The decision consolidates the judicial setback for the English law firm and confirms the annulment of a ruling that exceeded USD 16 billion.
The ruling dismisses Burford's attempt for the entire panel of judges to review the previous ruling, in what is known as an “en banc” appeal, an exceptional remedy granted only under extraordinary circumstances.
The resolution was signed by the court's clerk, Catherine O’Hagan Wolfe, and ratifies what had already been decided by judges Denny Chin, José Cabranes, and Beth Robinson, who had previously ruled against the fund.
Thus, the fund that had obtained a favorable ruling in the first instance from Judge Loretta Preska, which required the country to pay nearly USD 18 billion, suffers a new judicial blow in a dispute that has lasted more than a decade. The conflict originated after the expropriation of the oil company in 2012, during the presidency of Cristina Kirchner.
On March 27, the Appeals Court itself had overturned the first-instance ruling, rendering ineffective the multi-billion dollar sentence against the Argentine state. It was the largest trial the country faced abroad and, moreover, the largest lawsuit in U.S. history against a sovereign state.
The impact of that decision had not only legal consequences but also financial ones. Burford Capital's shares, which are traded in New York and London, experienced a sharp drop of over 43% following the ruling, while its market capitalization plummeted from about USD 3.5 billion in September 2023 to just USD 809 million.
In concrete terms, the judicial decision means that Argentina will not have to pay the amount established in the first instance, which represents a significant relief for public finances and clears one of the greatest legal risks the country faced.
The reaction of Horacio Marín
YPF also highlighted the significance of the ruling. The company's president, Horacio Marín, stated: “This decision confirms what has already been decided, preventing our country from a payment of 16 billion dollars plus interest. For YPF, this is a very relevant chapter because it allows us to consolidate our 4x4 Plan, boost exports, project ourselves towards 2031, and position Argentina as a reliable energy supplier for the world.”
The executive added that this outcome strengthens the company's outlook: “This drives us to continue working with determination and confidence in the future of YPF, generating value for the company and its shareholders.”
With this new ruling, the U.S. justice system has solidified a key shift in the YPF case, leaving Burford Capital as the main loser in a historic legal dispute and freeing Argentina from one of the largest economic contingencies in its history thanks to the work of the government of Javier Milei.
