YPF investors ask U.S. Supreme Court to revive $16.1 billion judgment against Argentina
YPF•Investment firms Petersen Energia and Eton Park petitioned the U.S. Supreme Court to reinstate a $16.1 billion judgment against Argentina in the YPF litigation. They are challenging a ruling that the claims belong in Argentine courts.
1. Appeal to the court
The investors asked the Supreme Court to overturn a March decision by the 2nd U.S. Circuit Court of Appeals, which held that their claims belonged in Argentine courts rather than the United States. The ruling overturned a judgment entered after more than a decade of litigation.
2. Dispute over nationalization
The case centers on Argentina’s 2012 nationalization of a 51% stake in YPF from Spain’s Repsol. Petersen and Eton Park allege Argentina violated YPF’s bylaws by not making a tender offer to minority shareholders; a U.S. district court previously awarded $16.1 billion after a three-day damages trial.
3. Petition arguments
The petition argues that Argentina should not be able to use its own laws to avoid liability in U.S. courts and questions whether U.S. courts should defer to a sovereign’s interpretation of its law when first advanced on appeal. It also argues the appeals court ruling conflicts with Supreme Court precedent and creates a split among federal appellate courts.
