What will happen to the price of the stock is that it will be inflated over the "true price" by risk adjusted premium of the buyout.

Stock price = "stock price without Elon owning it" + "Elons premium" * "likelihood of Elon losing the lawsuit and being forced to buy the company"

That likelihood should never be less than 0, so I think this legal fight would only help the twitter stock price.

I guess I am assuming that the "true price" is actually lower than what Elon offered for it.