Kind Consulting, Inc. sends human resources consultants across the country to counsel clients on various HR matters and issues. In June 2018, the company sent Pamela Primrose and Derek Demented to Houston, Texas, to consult with a large business. Both are senior consultants for the company and often work together with Fortune 500 clients. They were due to stay there for three days, so the company booked hotel rooms for Ms. Primrose and Mr. Demented.

Their first night in Texas, Mr. Demented asked Ms. Primrose to join him for dinner, then a glass of wine in his hotel room. She accepted his invitation. They enjoyed a good dinner; but after drinking some wine in his hotel room, she lost consciousness and passed out. She woke up 4 hours later and appeared to have been sexually assaulted.

In September, 2018, she reported the incident to her HR department. She previously considered Mr. Demented a "work buddy" and did not want to jeopardize his career, but finally thought she should report it after it weighed on her conscience. Given her frequent travel schedule, she believed she would have had difficulty reporting the incident sooner if she had wanted.

While HR was investigating Mr. Primrose's allegations, another female consultant came forward and wrote HR an anonymous memo stating that the exact same scenario happened to her when she traveled with Mr. Demented on a work assignment.

While looking through their records, HR found that that over the past five (5) years there were three (3) other complaints of a similar nature. One of those prior complaints claimed that after the female refused Mr. Demented's sexual advances, he continually berated her in staff meetings and in front of other coworkers.

None of the prior complaints made to HR were investigated. Mr. Demented's investigation relating to the incident with Ms. Primrose was completed in October 2018. The company suspended him indefinitely while they contemplated final action. During this initial suspension, Mr. Demented submitted his resignation and immediately left the company.

You are a highly regarded attorney in the company's general counsel's office. The CEO of the company comes to your office with the fact pattern described above.

Where is the company vulnerable if a harassment lawsuit is filed, and what are possible defenses to a lawsuit?