The real issues as far as I can tell was did the WTS have a duty of care in the case, because it happened before manditory reporting was law. They also
have a clergy privlidge issue that I dont think is a winner, but could win.
The child molestation in many of the lawsuits won against the Catholic Church happened before the mandatory reporting law was enacted. And the clergy privilege issue was decided by a California case in the Gilbert Simental criminal trial. It was decided that there was no clergy privilege, because the molester's confession was related to the Watch Tower's service or legal department, (I can't remember which).
When the elders in the Simental case still refused to testify, the Murietta prosecuting attorney brought charges against them for failure to report child molestation accusations in a state where it is mandatory. The elders cut a deal and testified in exchange for the charges being dropped.