So lemme get this straight... if it turns out the account is his... which Phonedog valued at "$340,000", if he wins, they would have to pay him $340,000 to buy it from him (since it was their company that valued it that much)...
On the other hand, if it turns out that it belongs to Phonedog, then he shouldn't owe them anything, since they would own the Twitter ID anyway (theoretically, all he would lose is access to the account).
BUT it would be an easy thing to create another account (now) and start getting people to prepare or migrate over his new account. There's no law (as long as there's no slander or libel or such...) in telling all his followers to leave the account... which would make it worthless... unless I'm missing something...
Seems like a waste of a lawsuit to me.