Buyout firm Vista Equity Partners Management LLC won a court battle this week against investors seeking a higher price on its $6.5 billion leveraged buyout of U.S. software company Solera Holdings, in a blow to hedge funds that deploy this strategy.

Private equity firms often face lawsuits from hedge funds that seek to turn a profit through so-called appraisal arbitrage, which involves asking a court to rule the acquirer should pay more money than the target company’s management has agreed to.

The Solera ruling represents the latest setback for these appraisal lawsuits, that already faced long odds of success after two landmark appraisal decisions last y

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