Hedge Funds Lose Appeal Over Argentine GDP-Linked Securities

Aurelius Capital Management and other hedge funds can’t maintain a suit against the Republic of Argentina over debt securities, the Second Circuit ruled Wednesday.

The suit over economic performance-linked payments allegedly due to the holders doesn’t meet exceptions to contractual clauses barring litigation over the securities, the US Court of Appeals for the Second Circuit said in an unsigned, unpublished opinion. The court affirmed a decision of the US District Court for the Southern District of New York dismissing the consolidated suits on the basis of the “no-action” clauses.

• The funds, which say they’re now in compliance with the clauses ...