Burford Capital Limited (LSE:BUR) shares rose 15% after a key US legislative threat was lifted and a US court ordered Argentina to hand over shares in oil group YPF to Burford’s clients.
The US Senate Parliamentarian ruled that proposed tax changes targeting litigation finance cannot be included in the latest budget reconciliation bill, removing a risk to Burford’s core business.
The decision follows weeks of uncertainty over the legislation’s impact on the sector.
Separately, a US court directed Argentina to transfer its 51% stake in YPF into a Bank of New York Mellon account and then to Petersen and Eton Park, the funds represented by Burford.
While further appeals are possible, the order is a milestone in enforcing the multibillion-dollar judgment Burford is pursuing.
The company specialises in funding complex legal cases in return for a share of any proceeds.
The shares rose 130p to 984p.