Argentina Defeats Hedge Fund Suits Over GDP-Linked Securities

Argentina won the dismissal of lawsuits by Aurelius Capital Management and other hedge funds seeking payment on securities tied to the performance of the South American nation’s economy.

Aurelius’ 2019 lawsuit claimed it was entitled to payment on gross domestic product-linked warrants issued in connection with restructurings of sovereign debt in 2005 and 2010. Other funds followed with similar claims. All of the cases were thrown out in a ruling made public Monday in Manhattan federal court.

US District Judge Loretta Preska said the suits were barred by a “no-action clause” in the bond agreement that required investors to meet ...