It obviously will be settled. The Navy could keep using that software for a while but the developer won't update and maintain it for them unless they get paid something. It's going to be useless in a few years, obsoleted by new software. On the other side the developer wouldn't want to lose such a large client, especially to a competitor. They'll agree on $omething, there was a misunderstanding, and business as usual.

Ars is wrong. You can only get 150k per work under the statutory damages provision.

I am wondering how a lawsuit like this affects company valuation.

Between $88.7 billion and 550K installs * ( unit price - discount ) + ( 550K * yearly maintancence fees * average months_since_first_install ) ?