Paul Marciano has been replaced as chairman by his brother Maurice Marciano and will leave the company on 30 January 2019 when his contract expires.
It said numerous allegations could not be corroborated but others were credible.
She accused company co-founder Marciano of harassment and assault, claiming he groped her breasts and made inappropriate comments to her during meetings and photoshoots in 2010 and 2011.
The allegations first became public when model Kate Upton said in a Time magazine interview that Paul Marciano grabbed her breasts during a Guess photo shoot almost eight years ago.
Fashion brand Guess has announced its co-founder Paul Marciano is stepping down after an investigation into allegations of sexual harassment and assault, which was sparked by a public complaint by model Kate Upton. In addition, the investigation found that Marciano did "place himself in situations in which plausible allegations of improper conduct could, and did, arise".
Armand (L) Paul (C) and Maurice Marciano, founders of the Guess clothing line, pose as they arrive at their company's 20th anniversary party in Los Angeles, May 9, 2002.
The allegations against Paul Marciano, who remains as chief creative officer of Guess, first emerged in February when U.S. model Kate Upton tweeted that it was "disappointing" Guess was still "empowering" him as its creative director.
Paul Marciano resigns at Guess amid sexual misconduct scandal
An internal investigation was launched by the company in February, with Guess heads forming a special committee to conduct a formal review into the matter, but The Layover actress is convinced the inquiry is bogus, suggesting bosses were just doing it to save face. He also owns a 17 percent stake in Guess Inc.
She also said that he harassed her by showing up at hotels where she was staying and texting her inappropriate comments.
It said that investigators interviewed more than 40 people and reviewed around 1.5 million pages of documents. The brothers co-founded the brand in 1981.
"Numerous allegations could not be corroborated", the filing added.
Marciano and Guess also reached non-confidential settlement agreements with five individuals totaling $500,000 to avoid "the cost of litigation and without admitting liability or fault", it said.
Attorney Lisa Bloom, who represents four of those women, said in a statement that they were pleased with his stepping down as board chair but disappointed he would stay on in other capacities.
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