Argentina has lost an attempt to dismiss a UK lawsuit filed by four hedge funds alleging that the country manipulated economic data to avoid making payments for securities linked to its growth.
The funds, including Palladian Partners LP, are seeking a payout of 645 million euros (US$738 million) in the High Court of England and Wales on the grounds that the government misled investors, either voluntarily or involuntarily, by publishing inaccurate statistics through the INDEC national statistics bureau for the year 2013.
The country denies manipulating the figures, noting that the changes were necessary to adequately reflect the state of its economy.
The government attempted to have the lawsuit dismissed on the grounds that the funds could not prove bad faith or misconduct by the Economy Ministry, but Judge Sara Cockerill dismissed the request and said Tuesday that the case should move to a full trial.
A lawyer for Argentine did not immediately respond to messages or calls seeking comment from Bloomberg.
The lawsuit stems from the 2001 default on a debt of US$95 billion, which came amid one of the worst economic crises in the country's history. As part of its restructuring programme, it sold GDP-linked securities, which were meant to pay out when growth hit a set threshold.
The other funds that filed the lawsuit are HBK Master Fund LP, Hirsh Group LLC and Virtual Emerald International Ltd.