Burford Capital Stock Slides After Court Ruling Strikes $16.1B

Burford Capital Ltd (NYSE:BUR) shares are under heavy pressure on Friday after a U.S. appeals court threw out a multibillion‑dollar judgment the company had been positioned to collect in its long‑running case against Argentina. Here’s what you should know. Burford Capital stock is testing lower boundaries. Why did BUR hit a new low? Appeals Court Overturns Multibillion‑Dollar YPF Judgment A divided panel of the 2nd U.S. Circuit Court of Appeals overturned the $16.1 billion award tied to Argentina's 2012 takeover of state‑owned oil company YPF. In a 2–1 ruling, the court said the breach‑of‑contract claims brought by former YPF shareholders were not valid under Argentine civil codes and public law, effectively wiping out the judgment, Reuters reported. The decision is a major blow to Burford, which financed the litigation and stood to receive a substantial portion of the payout. With interest, the award had grown to roughly $18 billion by the time the appeal was argued last October. Following the ruling, Burford shares plunged more than 47% in U.S. trading. Appeals Panel Scraps Turnover Order The appeals panel also tossed out a separate order that would have required Argentina to hand over YPF shares, saying the directive no longer made sense once the underlying judgment was erased. Argentina had been fighting to overturn the September 2023 ruling for months, warning that a payout of that size could put even more pressure on an economy already struggling with debt and inflation. During the hearing, the judges also zeroed in on a bigger question of why the case was being argued in a U.S. courtroom at all. The dispute focuses on actions taken in Argentina and governed by Argentine law, they noted. Attorneys for the plaintiffs pushed back, arguing that Argentina's history of economic volatility and political nationalism made U.S. courts a more reliable venue for investors seeking fair treatment. Market and Political Reaction The ruling was celebrated by Argentine President Javier Milei, who posted "WE WON IN THE YPF LAWSUIT…!!!" on X shortly after the decision. The case stems from Argentina's 2012 decision to seize a 51% stake in YPF from Spain's Repsol without making a tender offer to minority shareholders Petersen Energia and Eton Park. A U.S. district judge had previously found Argentina liable and ordered the multibillion‑dollar payout. BUR Price Action: Burford Capital shares were down 39.59% at $4.73 at the time of publication on Friday. The stock is trading at a new 52-week low, according to Benzinga Pro. Image: Shutterstock