Why It Matters

Eton Park Capital Management LP ended its lobbying relationship with OnMessage Public Strategies, the public affairs affiliate of Republican consulting firm OnMessage Inc., as litigation involving the hedge fund and Argentina over the government's 2012 expropriation of YPF reached a major turning point.

Eton Park Capital Management LP terminated its engagement with the firm effective June 1, according to a termination filing submitted in mid-August. Eton Park paid the firm $140,000 in lobbying fees across the first two quarters of the year. OnMessage reported $70,000 in lobbying income from Eton Park in the first quarter and another $70,000 in the second quarter before the relationship ended.

Eton Park's spending ranked it among OnMessage's larger clients. Merit Spread Foundation Inc. led the client roster at $350,000 in total fees, while Press Ganey Associates LLC paid $270,000. Judicial Crisis Network and Kreindler & Kreindler LLP each paid $240,000.

Broader Context

Eton Park's lobbying work focused on foreign relations issues related to litigation involving a foreign sovereign. The firm did not identify specific legislation in its advocacy efforts.

The lobbying came as Eton Park pursued long-running litigation against Argentina and YPF stemming from Argentina's 2012 expropriation of a controlling stake in the energy company. Eton Park alleged that Argentina and YPF breached obligations contained in YPF's bylaws following the expropriation.

In March, the Second Circuit ruled that the plaintiffs' breach of contract claims against Argentina failed as a matter of Argentine law, reversing a judgment that had contributed to a combined $16.1 billion damages award. The court also affirmed the dismissal of the plaintiffs' claims against YPF.

The court also vacated a post-judgment turnover order requiring Argentina to transfer its YPF shares. Burford Capital, which has economic interests in the Petersen claims, said it anticipated that the plaintiffs would seek rehearing en banc before the full Second Circuit.

Eton Park Capital Management LP terminated its engagement with OnMessage Public Strategies effective June 1.

The Bottom Line

Beyond Eton Park's departure, OnMessage continues representing clients including Merit Spread Foundation Inc., Press Ganey Associates LLC, Judicial Crisis Network and Kreindler & Kreindler LLP.

Tommy Binion, who worked on the Eton Park engagement for OnMessage, has prior congressional experience. Binion previously served as a vice president for then-Rep. Steve King (R-IA). Binion currently works for Heritage Action for America and OnMessage Public Strategies.

Eton Park's termination of the lobbying relationship came after the Second Circuit overturned the judgment against Argentina in the litigation at the center of its disclosed foreign relations lobbying.

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