She lost, badly, as in the "the plaintiff will pay JK Rowling and Scholastic Books for wasting their time"
Basicaly
1. The claimed similariies were absurd "I had a castle of stone, with doors and windows and rooms and she has a castle of stone, with doors and windows and rooms "
2. She could not actually prove that Rowling could have seen her work, or that anyone esle did, or that it existed before 2000
3. That fact the "original draft" she put in evidecne was found to have been printed by computer hardware not available until the late 90s rasied some questions about its authenticity.
5. There was also the question if Rowling was going to steal, would she steal from Stouffer? Stouffer is a monumentally bad writer and her book is appallingly bad in every respect.
There is another fantasy book published in 1959 called the Gammage Cup. One of the main characters is named Muggles.