The Thursday resignation of Square chief operating officer Keith Rabois stems from a sexual harassment allegation, according to the company.

"The first we heard of any of these allegations was when we received the threat of a lawsuit two weeks ago," Ricardo Reyes, a Square spokesperson, said in an emailed statement provided by the company. "We took these allegations very seriously and we immediately launched a full investigation to ascertain the facts. While we have not found evidence to support any claims, Keith exercised poor judgment that ultimately undermined his ability to remain an effective leader at Square. We accepted his resignation."

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