Absolutely!
I decided that this woman had no reason to lie,
You decided? Based on what? Would this stand up in a court of law, had the guy sued you?
He told me they had decided they were not going to do that
(press charges). I would want to know more about this, for example. Why not? Was a police report filed? Why not?
There is a reason that sexual harassment issues have strict, specific procedures in company policy books. You want to make the cases that are real, stick, and you want bogus cases to not irreparably harm a falsely accused person.