CEO Christopher Bogart writes for ALM: "Investors and creditors own the Argentina claims, not Burford, and the 2nd Circuit abdicated their rights"

The Second Circuit’s decision in Petersen Energía Inversora S.A.U. v. Argentine Republic raises significant questions for global investors. The court acknowledged Argentina’s “knowing and flagrant” breach yet directed investors away from U.S. courts and toward remedies in Argentina. That has real implications. U.S. capital markets depend on the enforceability of commitments made to investors who rely on them.

In a divided opinion, the court effectively held that investors who bought NYSE-listed shares must seek relief not in New York, but in Argentina—a striking result. An investor in New York can rely on SEC disclosures, purchase NYSE-listed shares and suffer losses from an admitted, flagrant breach, only to be told that U.S. courts offer no recourse and they must seek relief in the courts of the country responsible for the breach.

To be clear, Burford does not “own” these claims; it provided financing, as it does in many complex matters globally, including for bankrupt estates, such as Petersen, that lack the resources to pursue expensive, complex, multi-year cases, in this case, against a sovereign defendant with a long litigation track record.

Read CEO Christopher Bogart's full piece on this subject in ALM here.