The United States will support Argentina’s position in the multi-billion-dollar lawsuit brought against the South American country in New York courts over the 2012 nationalization of the oil company YPF.
The U.S. Department of Justice has notified the New York Court of Appeals that it will appear in the case as an amicus curiae (friend of the court) in favor of Argentina, local media reported.
In 2015, after acquiring litigation rights from the Argentine Petersen Group, a former minority shareholder of YPF, the British firm Burford Capital and the U.S.-based Eton Park sued the Argentine state in New York over the nationalization of YPF in 2012.
In 2023, U.S. District Judge Loretta Preska ruled in their favor and ordered Argentina to pay $16.1 billion in damages.
On June 30, Preska ordered Argentina to transfer its 51% stake in the oil company to the plaintiffs.
However, this Tuesday, the Second Circuit Court of Appeals in New York issued a temporary administrative stay of Preska’s order.
“The intervention of the U.S. government in support of the Republic of Argentina is likely intended to influence the Court of Appeals to halt enforcement of Judge Loretta Preska’s ruling while the appeal is being processed,” said Sebastián Maril, director of Latam Advisors, who is closely following the case.
