Hunter King, 20, who plays "Summer" on the show, told police in December that Muhney, 38, bullied and harassed her and fondled her breasts on two occasions, TMZ.com reported Saturday.
Both incidents were unsolicited and unwanted, King told police.
As a result, Muhney, who played Adam Newman on the soap opera, will make his last appearance on the show on Jan. 30, TMZ said.
Muhney's character is extremely popular with fans, who have threatened to stop watching, TMZ said.
Celebrity Breakups and divorces of 2014 [PHOTOS]