A divided panel of the 2nd U.S. Circuit Court of Appeals overturned a $16.1 billion judgment that had been awarded against Argentina for seizing control of YPF in 2012. The decision, issued on March 27, 2026, held that the breach‑of‑contract claims brought by former YPF shareholders were not governed by U.S. law but by Argentine civil codes and public law, and therefore were invalid.
The judgment had originally been awarded by a U.S. district judge in September 2023 and had grown to roughly $18 billion with interest by the time the appeal was argued. The case stems from Argentina’s 2012 seizure of a 51% stake in YPF from Spain’s Repsol without a tender offer to minority shareholders Petersen Energia and Eton Park, which led the former shareholders to file suit in the United States.
The appellate ruling also voided a separate court order that had required Argentina to hand over YPF shares, clearing a legal obstacle that had impeded the company’s operations and future financing. With the judgment and the share‑transfer order removed, YPF no longer faces the prospect of a massive payout that had created legal and financial uncertainty for the company and its investors.
Argentina’s economy stands to benefit from the relief, as the removal of a potential $16 billion liability could help the country attract investment and reduce the fiscal burden that has weighed on its economy for more than a decade. President Javier Milei posted on X, "WE WON IN THE YPF LAWSUIT…!!!" He also described the decision as a "historic milestone in the defense of the Argentine Republic in litigation that, for more than 12 years, has imposed enormous economic, legal and reputational costs on the country."
Burford Capital, the litigation‑finance firm that had backed the claim, now faces a significant loss of expected returns from the case. The ruling eliminates the liability that Burford had been pursuing and materially alters its financial outlook.
The decision removes a major legal hurdle for YPF, allowing the company to move forward with its operations and potential financing without the looming threat of a court‑ordered payout or forced share transfer.
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