Lawsuits brought by Aurelius Capital Management and other hedge funds seeking payments on securities linked to the performance of Argentina's economy, have been dismissed by a federal court in Manhattan, according to a report by Bloomberg.

The ruling, which was made public on Monday, dismissed Aurelius’ 2019 lawsuit claiming it was entitled to payment on gross domestic product-linked warrants issued in connection with restructurings of sovereign debt in 2005 and 2010, along with similar claims made by other hedge funds.

In her ruling, US District Judge Loretta Preska said the suits were barred by a “no-action clause” in the bond agreement that required investors to meet five preconditions before filing suit, including at least 25% of the bondholders to making a written request to the bond trustee.

“Plaintiffs’ failure to take the contractually required steps precludes them from bringing suit,” the judge said.

The lawsuits related to securities issued through sovereign debt restructurings in 2005 and 2010, which followed Argentina's approximately $100bn debt default in 2001.

The hedge funds claimed they had a right to additional payments when Argentina's gross domestic product rose at least 3%, and were entitled to a payment for 2013.

According to court papers, Argentina changed its methodology for calculating GDP in 2014, and concluded that no payment was due for the prior year.