U.S. Department of Justice Sides With Argentina in $18 Billion YPF Lawsuit
The U.S. DOJ is supporting Argentina in an $18 billion lawsuit related to the 2012 nationalization of YPF, citing concerns about reciprocal treatment of U.S. officials.Summary
The U.S. Department of Justice has intervened in the $18 billion lawsuit between Argentina and minority shareholders of YPF, the Argentinian oil company nationalized in 2012. The dispute arose from Argentina’s expropriation of YPF shares from Repsol without a mandatory tender offer to minority shareholders, Petersen Energia and Eton Park Capital. These shareholders, backed by Burford Capital and Eton Park, sued in the U.S. and were awarded damages totaling $16.1 billion, increasing to an estimated $18 billion with interest. A U.S. District Court judge ruled Argentina liable for failing to offer to purchase shares from other shareholders during the 2012 expropriation.
Currently, the plaintiffs claim Argentina is withholding evidence – texts and emails from officials to former YPF shareholders. The DOJ has urged a federal judge not to hold Argentina in contempt for allegedly failing to provide these materials, arguing that extensive discovery requests targeting foreign officials could lead to retaliatory actions against U.S. officials in foreign courts. The DOJ stated that allowing “burdensome and intrusive” discovery could have negative consequences for the United States.
(Source：Oil Price)