A more detailed account from Slate.  This passage sums up the accounts pretty well:

These students, alumni, and faculty all had slightly different reads on exactly how out of line Rubenfeld’s alleged behavior was (and some faculty members had no firsthand knowledge of it at all). Some described Rubenfeld as flirtatious and line-crossing; others called his behavior harassment. The picture we got from these conversations is not one of straightforward abuse but rather a fraught and uncomfortable situation full of insinuation and pushed boundaries that can make learning difficult and has the potential to push women out of the pipeline for the most prestigious and competitive areas of the law. This type of behavior, which is frequently dismissed as “borderline” or “creepy” and not worth making a formal fuss over, can have very real consequences.

If the allegations about this pattern of conduct are confirmed, then Yale would be within rights to fire him after an appropriate process.  This wouldn't be the first time Yale Law has ousted a faculty member over allegations of sexual harassment and misconduct.

(A sidenote:  the article does wildly overstate how important Supreme Court clerkships are.  The one thing they do guarantee are huge signing bonuses (on the order of 300K these days) from the top law firms!)