Since you are month to month that means either party can terminate the lease agreement and not be expected to be liable for further rent or moving expenses. The landlord has breached the current lease agreement by allowing someone else and himself to live there. The most you can recover from the lawsuit would be the difference in increase you have been paying because of her living there. This will not invalidate the entire contract because for the most part you accepted the terms by allowing him to live there with you when those where not the terms.
At the present time you are only obligated to pay your amount of rent and not the increase due to an extra person living there. I doubt the landlord will sue you given that you have evidence to show they breached the lease terms.
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