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Cases & Deals

March 31, 2023

King & Spalding Wins in Major Suit Against Republic of Argentina

On Friday, Judge Loretta Preska of the U.S. District Court for the Southern District of New York granted summary judgment in favor of King & Spalding clients Petersen Energia and Eton Park Capital Management in a long-running breach of contract litigation against the Republic of Argentina and oil company YPF, teeing up a damages trial expected to take place this summer. 

In complaints filed in 2015 and 2016, respectively, Petersen and Eton Park alleged that the Republic violated contractual obligations it made to shareholders in connection with an initial public offering conducted in 1993, which required the Republic to conduct a tender offer if it acquired a certain percentage of YPF shares. In May 2012, the Republic expropriated 51% of YPF’s shares from the company’s then-largest shareholder, Repsol YPF S.A., but did not launch a tender offer for the remaining shares, including those held by Petersen Energia and Eton Park.  On Friday, Judge Preska ruled that Argentina breached its obligation to conduct a tender offer in connection with the expropriation, and was therefore liable to Petersen Energia and Eton Park for compensatory damages, including prejudgment interest. 

King & Spalding represents Petersen Energia Inversora, S.A.U., Petersen Energia, S.A.U., and Eton Park Capital Management. Kellogg Hansen Todd Figel & Frederick and Clement Murphy PLLC serve as co-counsel.

Judge Preska’s decision is attached.