No court would consider him guilty of anything for a joke about a dongle.
I doubt his company had a sexual harassment policy that was substantially more aggressive than what the law provides.
If she asked him to stop, and he kept going, then I'd say that he did something wrong. If he made a dick joke, then no. People make dick jokes in semi-private conversations. Women do, men do, because dicks can be funny. If she says "I wish you wouldn't make jokes like that around me", then he should have stopped and would be in the wrong, but I've seen no evidence of that.
The termination suit is uncertain. It's far from a slam dunk, obviously, especially since he admitted making comments that he considered wrong and embarrassing. Bad move to discuss this in the public so soon. He should be able to get defamation, at least with good enough odds to get a settlement that'll cover him till he gets his next job, given what PlayHaven's management said about the termination and about him.