First of all, the most important thing: talk to a lawyer. The real ones that demand money, not random people from the internet. Sexual harassment is a particularly nasty thing, because no matter what you do, judges will always be biased against you:
You did nothing? How dare you accept sexual harassment at your company!
You fired him? How dare you fire that innocent guy groundlessly!<p>Second of all, you <i>need</i> to listen to his side of the story as well. People are probably going to down-vote me for this one but taken out of context text messages don&#x27;t mean very much. His friends could&#x27;ve played a very bad joke on him, the messages could be forged or he could&#x27;ve made an honest mistake.<p>Hell, if I were in your place I even would give the guy a second chance if he honestly apologized. But do make sure you watch him closely if you decide to take this route. These people do <i>not</i> tend to improve.