The lawsuit is only limited to dynamics in the crypto market, especially Dogecoin. Because there have been many lawsuits before. Those with high wallet contents will always win the lawsuit. Maybe this is just my opinion, because we also don't see the process in the trial. And I'm sure if this happens then Elon Musk will easily get past him.
And the issue is limited to Elon Musk only not on the Dogecoin Project. I believe Elon was charged with market manipulation and other possible cases that can be filed against him even though most of them will be thrown into the trash. I don't care what happens to the case against Elon since he does not represent any crypto project.
Maybe it would discourage Elon Musk from shills for Doge in the future since he got called out and a sue case tail to tainted his fame? It might now harm him much but it might hurt Doge chance to free press by everytime he want to tweet about it.
No, it does not affect him, as far as I can remember I read some article on the internet that he will continue to support Doge despite the lawsuit.