Massive amount of yikes in this thread. Playing amateur psychologist / lie detector or trying to find 'gotchas' in the complaint is not a good look. I imagine if this was your friend - or even Kayte Christensen - you folks might have a different approach. Kelli strikes me as credible, and it seems a far stretch to imagine she'd put so much on the line - both career and long-term friendship - to make something up. And if she did make it up, I'm pretty sure she would've told a much more damning or provocative story. The allegations are bad, but we've heard much worse.
THAT SAID, even for people who believe Luke is 100% innocent, I don't think there's any good reason to keep him. From a basketball perspective, we lose basically nothing - it's still the first round of the playoffs, the Sacramento HC job is still a desireable one, and there are still many qualified head coaches available.
From a PR + cultural perspective, it's a huge negative to keep him on. Even if he is 100% innocent, there is almost no chance that there will be conclusive evidence coming out to exonerate him, certainly not anytime soon, unless Kelli turns around and recants in the next few weeks. Do we really want this hanging over the team for the next year and on? Do we need yet another festering rot in this franchise? It's he-said-she-said, so questions WILL persist, whatever anyone thinks or argues.
FINALLY, from Luke's perspective, I think he is better off stepping back for now. For Luke's career, these allegations will ALWAYS be there. His reputation has been tarnished, whatever the Kings do next. If he weathers this storm, he will be fine. He's 39 years old, well liked around the league, and already considered a top coaching prospect. One season out of basketball won't change that. Whether the Kings keep him or go another direction won't change that.
The question is not whether these allegations are true or not, it is whether the Kings should tie themselves to Walton and make his drama our drama. The Kings can put forth a very diplomatic - and true - argument that Luke and the team will both be better off if Luke has the time to deal with this stuff privately and away from the media spotlight. He's lived an incredibly charmed life and will survive.
Find someone else and move on.