Hedge fund Burford Capital has secured a key enforcement victory in its $16.1bn legal battle with Argentina, after a US District Judge ordered the country to transfer a controlling 51% stake in energy giant YPF to the fund within two weeks, according to a report by the Buenos Aires Herald.
The ruling follows Burford’s successful lawsuit over Argentina’s 2012 expropriation of YPF shares, in which the court found the country failed to make a mandatory tender offer to minority shareholders. Burford acquired litigation rights in 2015 and has since pursued Argentina for damages.
Argentina, represented by Sullivan & Cromwell, had argued that the handover violates both the US Foreign Sovereign Immunities Act (FSIA) and Argentina’s own expropriation laws, which require a two-thirds congressional vote for any such transfer. The US government also warned last year that forcing sovereign share turnover could set a troubling precedent.
But Preska rejected these arguments, stating the Republic has legal pathways to comply and that the commercial implications of the shares’ use satisfy FSIA’s conditions.
Burford’s win highlights the growing role of litigation finance in sovereign disputes, especially in emerging markets. The case is under appeal and could ultimately reach the US Supreme Court. Argentina’s President Javier Milei has vowed to fight the decision.
