I'm in the camp of wait and see the facts before I make any judgements, but if it goes down in the direction the news seems to be heading, then make an example out of him to show that the University does not tolerate this behavior.
From what I've gathered an assistant coach approached Paterno many years ago. He reported witnessing the accused in a shower with a young boy. Joe went to his superiors to address the situation, left it in their hands, and moved on.
Given this, I don't know what to think. Obviously the act itself is despicable. Did Paterno do enough - my heart says absolutely not. He should have confronted the assistant coach. Probably should have socked him too.
But where does legality fit into this? I don't know enough to begin to comment.
But should Paterno followed up on this? Yes. Yes and Yes. And if all the allegations were true, he should have spearheaded the immediate termination and then criminal prosecution of that assistant coach. For his terrible acts. For all the boys he abused. For all of the trust he betrayed in families and friends, both of the children and the university. Joe should have put the foot down and shown that this type of behavior is completely unacceptable and will be punished most severely.
And if Joe let this happen, then he is nearly as guilty as the accused. And I hope he feels the weight of suffering from the victim's on his shoulders, knowing that he could have stopped it.
