Inside Record $16 Billion Judgment Against Argentina

Episode description:

John is joined by Christopher Bogart, Chief Executive Officer, Director and Co-Founder of Burford Capital and Derek T. Ho, Partner at Kellogg, Hansen, Todd, Figel & Frederick, P.L.L.C.  They discuss how Derek obtained a $16 billion judgment, the largest ever in the United States that has not been overturned on appeal, against Argentina on a claim for breach of contract.  They also discuss the role Burford played in financing the litigation.  In the 1990s, when Argentina wanted to privatize its nationally owned oil company YPF, it faced investor skepticism due to its troubled history of nationalizing private companies.  To address those concerns, it structured the YPF offering to include a right of shareholders to have their shares repurchased by Argentina at an agreed upon price if Argentina ever retook control of YPF.  In 2012, Argentina retook control of YPF, but refused to repurchase the remaining public shares at the agreed upon price.  John, Christopher and Derek discuss the role Burford played from the outset of the case, Argentina’s assertion of foreign sovereign immunity, and Argentina’s other defenses.  They also discuss the summary judgment process and ruling, the three day bench trial composed entirely of expert witnesses, and the status of post-trial motions and appeal.

Published: Oct 19 2023