Justices Leave Argentine Oil Nationalization Ruling Intact

Argentina’s bid to argue that the Foreign Sovereign Immunities Act bars an investment conglomerate’s lawsuit over the nationalization of its flagship energy company was rejected by the U.S. Supreme Court June 24.

The suit accuses Argentina of expropriating 51% of YPF SA in 2012 in violation of a company bylaw that requires any takeover bid to be accompanied by a tender offer. It also claims YPF failed to enforce a related provision removing voting and dividend rights from any acquirer that fails to issue the required tender. Those bylaws were adopted in 1993, when YPF, which began as a state-owned ...