- Argentina nationalized 51% of YPF, stripping Repsol of control, but later agreed to pay $5 billion in compensation in 2014.
- However, in 2023, a lawsuit against Argentina, backed by Burford Capital, was filed by YPF’s minority shareholders, who claimed they were harmed by the government’s decision to nationalize the oil company.
- Subsequently, YPF’s minority shareholders won a $16.1 billion award against the South American country.
Burford Capital (BUR) shares tanked more than 37% in Friday morning’s trade after a U.S. appeals court ruling in a case that involved Argentina.
According to a Reuters report, a federal appeals court overturned a prior ruling that ordered Argentina to pay $16.1 billion to the former shareholders of oil company YPF SA.
According to the report, Burford Capital would have received a large share of the award if the appeals court had upheld the previous ruling. The federal appeals court stated that the Manhattan judge who made the previous ruling had wrongly ruled in favor of the former shareholders of YPF SA.
Retail sentiment on Stocktwits around Burford Capital trended in the ‘bullish’ territory with message volumes at ‘high’ levels at the time of writing.
What Was The Case About?
The Argentine government decided to nationalize YPF, the country’s largest oil company, in 2012. Argentina’s President at the time, Cristina Fernández de Kirchner, stated that this move was necessary to reduce the country’s oil bill.
Argentina nationalized 51% of YPF’s shares, resulting in Repsol losing control of the oil company. They agreed to pay Repsol $5 billion in compensation in 2014.
However, in 2023, a lawsuit against Argentina, backed by Burford Capital, was filed by YPF’s minority shareholders, who claimed they were harmed by the government’s decision to nationalize the oil company.
Subsequently, YPF’s minority shareholders won a $16.1 billion award against the South American country.
However, a three-judge appeals court questioned in October 2025 why a case between the Argentinian state and YPF’s minority shareholders was brought before a U.S. court.
Argentine President Javier Milei on Friday welcomed the appeals court’s ruling in a post on X.
How Did Retail Traders React?
One bullish user on the platform stated that the trading volume following the YPF case ruling lets investors buy into Burford Capital’s “core business for nothing.”
Another user called the steep fall in BUR stock an “overreaction.”
BUR stock is down 45% year-to-date and 65% over the past 12 months. The iShares Russell 2000 Growth ETF (IWO) is up 18% over the past 12 months, while the iShares Russell 2000 ETF (IWM) is up 20%.
Also See: Guggenheim CIO Reportedly Warns Oil Shock Could Drag US Stocks By 10% – S&P 500 Eyes 5th Weekly Loss
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