Shares of Burford Capital, a financial services company, soared to a four-year high following a favorable judgment in a case against the government of Argentina. A U.S. federal judge ruled in favor of investors backed by Burford Capital, resulting in a $16 billion judgment.
Significant Stock Increase
Burford Capital’s stock experienced a 28% surge in market trading on Friday, reaching $17.70, its highest level since August 2019. Over the course of this year, the shares have already witnessed a remarkable 95% rise, closing at $15.91.
The court decision holds Argentina accountable for $8.6 billion in damages and an additional $7.6 billion in interest. The ruling stemmed from Argentina’s failure to repurchase shares from shareholders of state oil giant YPF when the oil company was re-nationalized in 2012.
Burford’s Financial Backing
Burford Capital provided crucial financial backing to the YPF shareholders involved in the case. Consequently, the company is now set to receive a significant portion of the awarded damages and interest.
In conclusion, Burford Capital’s stock has witnessed substantial growth following the favorable judgment against the government of Argentina. With a remarkable rise in share value and the prospect of receiving a significant share of damages, Burford Capital continues to make waves in the financial industry.