Argentina Wins Historic YPF Lawsuit in US Court

A U.S. Appeals court has voided a $16.1 billion judgment against Argentina stemming from the 2012 nationalization of the country’s largest energy company, YPF SA. The ruling, issued on March 27, 2026, overturns a previous decision that had threatened the Argentine economy with a massive financial liability.

The judgment was originally awarded in 2023 by U.S. District Judge Loretta Preska, who found that the rights of former YPF shareholders were violated during the Argentine government’s seizure of the oil company. By the time the appeals court intervened, the total amount owed had swelled to more than $18 billion when accounting for accumulated interest.

Jurisdictional Dispute and Legal Arguments

The legal battle centered primarily on whether a U.S. Court had the authority to adjudicate the matter. Argentina argued that Judge Preska should not have decided the case because the dispute was governed by Argentine law and should have been handled within the Argentine judicial system.

The plaintiffs, consisting of former shareholders backed by the litigation funder Burford Capital, countered this position. They claimed that investors would not have purchased shares in YPF if they believed their only legal recourse in the event of a dispute would be in an Argentine court.

During oral arguments in October 2025, two members of a three-judge panel in the U.S. Second Circuit Court of Appeals expressed skepticism regarding the appropriateness of the case being decided by a U.S. Court. This skepticism ultimately informed the decision to void the award on March 27, 2026.

Reaction from the Argentine Government

President Javier Milei hailed the court’s decision as a major victory for the nation. In a statement posted on X, the president declared, We won the YPF lawsuit.

It’s historic, unthinkable, the greatest legal achievement in national history.

President Javier Milei

President Milei also hosted the legal team responsible for the strategy in the YPF case at the Casa Rosada. He previously characterized the litigation as having imposed an enormous economic, judicial and reputational cost on Argentina over the course of more than 12 years.

Efforts to Collect the Judgment

Prior to the judgment being voided, the plaintiffs had engaged in extensive efforts to identify and seize Argentine assets within the United States to satisfy the debt. These efforts included attempts to obtain the communications of current and former Argentine officials.

One of the most contentious points of the collection process involved the location of gold bars that Argentina’s central bank had moved overseas. The plaintiffs sought to seize the Argentine government’s 51 percent stake in YPF.

While Judge Preska had previously ordered Argentina to hand over the YPF shares, that specific ruling was put on hold by the Second Circuit Court of Appeals and remained the subject of a separate appeal until the broader judgment was voided.

In the period leading up to the final ruling, the Second Circuit had also issued a discovery stay. This order blocked the holders of the judgment from seeking further information on seizable assets while the court considered Argentina’s challenge to the award.