I think it was mostly that Naomi dropped it after excessive amounts of harassment. And Linus’s excuse was that she misunderstood him and it is her problem for thinking that a guy saying he would only give her a business opportunity if she came to his bedroom at 3 am was sketchy. And his wife was totally CC’d to some of those emails anyway.
I recall there was a different (not going to speculate on who the timeline would line up with…) case where Linus was accused of sexual assault (possibly outright rape?) where his defense was that he was a virgin until he met his wife which… okay.
As it stands, it is basically proven that the company has severe cultural issues regarding sexual harassment and bad workplace dynamics. The sexual assault accusations are still very much in the “where there is smoke…” range. And it is why I point out that Madison’s harassment claims were corroborated by former employees but her assault claims were not.