It's hard to pin down what the Spurs know. It seems like the Four Seasons incident is what spurred the discipline rather than the lawsuit. I guess we don't know for sure that the hotel situation even happened. If they were trying to get out ahead of the lawsuit, it is a huge mark against the team. I don't actually think the team had the responsibility to fire Primo immediately upon hearing the first allegation. While you can take it seriously, you can't assume guilt no matter how much folks are pushing for that.
I hope the Four Seasons canon is true, and upon hearing the first allegation, the Spurs did their investigation and then fired him upon finding more evidence. It wouldn't be that impossible to believe Primo had hidden it from the team given they didn't seem to know about this when they drafted him. We may well find out that Primo has been doing this for a while and either kept getting lucky with targets or was sociopathically skilled at picking them. Pop's original quote suggested Primo might be able to come back into fold, which is hard to imagine if the Spurs knew the full extent of Primo's allegations or especially the legal situation Primo found himself in. It feels like the Spurs may have heard the first allegation but, still protected Primo came up with the spasming-butt thing and checked it out, and when they found another allegation, they cut him. After hearing what he had to say, they still released him, but they softened their stance to leave the door open for him to return or at least to endorse him finding another opportunity in the NBA. Then they got a fuller picture of what happened and realized they had to completely drop him and expunge him in hopes of mitigating their legal liability.
That's a possibility I want to believe, but there's also the idea that they heard about Primo's nature during their pre-draft investigation but chalked it up to "boys will be boys" and otherwise downplayed the issue and/or assumed their culture could smooth him out or at least keep him in check. Then while they tried to provide him with help and discipline, they also didn't continue to make sure nothing happened. That's a situation where even if they heard of something, they hid behind the "innocent until proven guilty" logic to not truly intervene. Then only after an employee who quit because she wasn't taken seriously retained a lawyer did the team react. They originally just deactivated Primo ala Watson and considered letting things blow over, but then after hearing about the hotel incident leaking, they decided to try to get ahead of everything and fire Primo in hopes their silence, quick action and generous settlements can keep prying eyes away.
I don't want to believe in that second scenario or believe the truth is closer to that than the first. I don't think the front office can survive that, and I don't think I'd want them to. It'd suck for Pop's legacy. Even if he didn't know, it'd be an open question if he only didn't know because he didn't WANT to know. He wouldn't be the first person to say or even to believe in a lot of progressive things while still holding or allowing some regressive ideas. I don't believe that's true, but I'm also not going to get caught up in whether Pop "looks like someone who'd do that". The speculation is wildfire that destroys goodwill and characters. I'd understand the Spurs' impulse to keep all of this under wraps. because in a world where these are just allegations without confession or concrete evidence, the damage to Primo would be immense and slow to ebb. But if they did so, the consequences are going to be immense. The team is almost certainly going to be sued over this regardless. If they don't, it's only because the victim personally doesn't want to. Primo doesn't have a ton of money in comparison to someone like Watson. The Spurs are a bigger fish, and they'll very likely not fight the suit if they can get a reasonable settlement. Unless this staffer just quit out of a conflict of interest or whatever, her being an ex-employee is really going to hurt SA in the court of public opinion. It's going to be really hard to convince the public that they didn't know at least some of what happened. It'd be completely impossible if they had kept him to trade like some argued for.