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* CEO of WPP's J. Walter Thompson accused of abusive conduct
* Plaintiff says ad agency retaliated after she complained
* Defendant Martinez says 'did not create environmentdescribed' (Adds WPP statement)
By Jonathan Stempel
NEW YORK, March 10 (Reuters) - J. Walter Thompson's chairmanmakes "constant racist and sexist slurs" that demean women,blacks and Jews, and the advertising agency has retaliatedagainst a top female executive for complaining about his"abusive" behavior, a lawsuit claims.
In a complaint filed on Thursday in the Manhattan federalcourt, JWT Chief Communications Officer Erin Johnson saidGustavo Martinez, the agency's worldwide chairman and chiefexecutive officer since January 2015, "has no hesitation" makingoffensive comments, even to senior JWT executives and the media.
J. Walter Thompson, its British-based parent WPP Plc and Martinez were named as defendants.
Martinez said he was aware of the allegations and wouldwelcome the opportunity to present more details about the matterduring legal proceedings.
"I want to assure both our clients and my colleagues that Ibelieve I lead this company with a collaborative and collegialstyle and did not create the kind of working environment thathas been described in the complaint," he said in a statement.
WPP said it was aware of the case.
"WPP's lawyers have been conducting an enquiry into previouscorrespondence on these matters since February 25 and have foundnothing, as yet, to substantiate these charges," it said.
Johnson's lawyers did not immediately respond to a requestfor comment.
According to its website, JWT's clients include suchwell-known companies as Coca-Cola, HSBC, Johnson & Johnson,Nestle, Shell and Wal-Mart.
The website notes Argentina-born Martinez is the firstHispanic CEO of a global advertising agency, and is a "truly'global citizen'" who was raised mainly in Spain, has workedaround the globe and is fluent in five languages.
According to the lawsuit, Johnson joined JWT in 2005. Butafter Martinez took over, she has found it "virtuallyimpossible" to present the agency in a positive light given hisbehavior.
The lawsuit said Martinez has made "numerous" comments aboutrape, once saying in front of other workers that Johnson shouldapproach him "so I can rape you in the bathroom," and hascomplained about women he deemed "too sensitive" or "too bossy."
Martinez was also accused in the lawsuit of once callingsome airport customs agents "black monkeys" and "apes," andcomplaining about "too many" Jews in Westchester, the suburbanNew York county where he lives.
Johnson also claimed in the lawsuit that Martinez hastouched her inappropriately, and on two occasions bit into anapple she was eating before returning the apple to her.
The lawsuit said JWT responded to Johnson's repeatedcomplaints by reducing her pay and responsibilities, beforeputting her on paid leave last month.
The lawsuit seeks unspecified back pay, punitive damages andother remedies.
The case is Johnson v. J. Walter Thompson USA LLC et al,U.S. District Court, Southern District of New York, No.16-01805. (Reporting by Jonathan Stempel in New York,; Editing by DanGrebler, Greg Mahlich)
