I'm going to assume that it's more than just an allegation and that it's sufficiently substantiated if they're willing to publicly cut ties with him like this. Their statement says that they confirmed the events with the involved parties, so I imagine they're confident in their decision.

According to the new statement from Midnight Society, the studio’s leadership became aware of the allegations for the first time on June 21 shortly after Conners’ tweets went viral on Twitter, and began its own investigation into the situation. “We assumed his innocence and began speaking with parties involved,” the company wrote.

They heard the allegation, looked into if it was true and how true it is, and found a reason to sever a major figure from the roster. That's not a "it's just an allegation" - that's a third party investigating a potential child predator and not liking what they found.

Update?