Burford Capital (NYSE:BUR) might not be an immediately recognized name. However, its clients—especially those who need funding to pursue litigation—recognize it, and that’s what really matters in the end. Especially when the lawsuits in question win. Thanks to one such lawsuit, Burford Capital shot up over 53% in Friday’s trading.
This particular suit—the government of Argentina and energy company YPF (NYSE:YPF) versus The Petersen Group—ended well for the Petersen Group. That’s good news for Burford Capital, who put up the dough for Petersen to sue. That case featured Argentina re-nationalizing YPF, a move that left Petersen out in the cold. Petersen had purchased shares of YPF and also got assurances that, if YPF were nationalized, Petersen would be reimbursed for its shares. But YPF share prices plummeted, and the loss of that value left Petersen insolvent.
Now, a court ruled in Petersen’s favor, and that means Burford is in line to collect a portion of that payout. The case has been running since 2012, reports note, which will likely make it a relief to Petersen shareholders to finally have the matter resolved. Now, failing a stay from the court or a surety bond posted by the Argentine government, a payout should be forthcoming.
Looking at the last five days in trading for Burford Capital, trading was mostly flat until the run-up that hit shares earlier today arrived. While Burford is somewhat off its highs today, it’s still significantly higher than it’s been at any point in the last five days. It actually hasn’t been this high since August 2022, putting it in line for a new 52-week high.
