Not a chance that the case gets thrown out for being frivolous or any other reason. GERS has a patented process that has been stolen by ICM and PEIX knew they were going to be infringing wether ICM promised to cover their indemnity or not. If PEIX didn't know that, then the management is even more incompetent than anyone thought.
The case will go to court, unless both sides can come to a settlement, which would be best for all.