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Ironically, just about the time this suit was filed I pointed to an LA Times piece on how Disney had screwed over a naive young author. The Tolkein estate isn't young and it has lots of money to hire lawyers. Their primary claim seems to be the same, though - given the massive grosses taken in by the Rings movies they've been paid, um, let's see here... NOTHING.
I can't figure out from the various news stories whether WB is taking on all of New Line's debts and obligations or whether those will be shed the way New Line's 600 employees will be. Assuming that WB still wants to see the Hobbit movies made (on the "we will make another kajillion dollars this way" theory) then they'll probably come up with some kind of settlement that leaves them in clear control of the rights.