WPP Settles Lawsuit Alleging Misconduct by Former Ad-Agency Head -- 2nd Update
04 Aprile 2018 - 8:31PM
Dow Jones News
By Alexandra Bruell and Suzanne Vranica
WPP PLC has settled a lawsuit brought by an employee that
alleged racist and sexist behavior by a top executive at one of the
advertising giant's premier agencies, ending a legal dispute that
helped raise awareness about inappropriate behavior on Madison
Avenue.
Erin Johnson, chief communications officer of the WPP-owned
agency J. Walter Thompson, is receiving a substantial settlement, a
person familiar with the matter told The Wall Street Journal, which
first reported news of the agreement Wednesday.
In her 2016 lawsuit, Ms. Johnson alleged that JWT's then-chief
executive, Gustavo Martinez, engaged in a pattern of misconduct
that amounted to gender discrimination and a violation of her civil
rights.
In a statement, JWT confirmed it had reached the settlement and
declined to disclose the terms. The company said Ms. Johnson has
resigned from her role at the agency.
Shortly after Ms. Johnson filed the lawsuit, Mr. Martinez left
his post as CEO of JWT. A WPP spokesman said Mr. Martinez is
currently working on assignments in Spain for WPP.
Ms. Johnson said in statement, "The past few years have been
challenging to say the least, and I am grateful for the love and
encouragement from family, friends and those of you in the industry
who spoke up and offered support." She added, "I hope that my
personal experience will encourage others to speak up and follow
their convictions."
News of the settlement comes as WPP's board is investigating
allegations of personal misconduct by the company's chief
executive, Martin Sorrell. The Wall Street Journal reported Tuesday
that the board is looking into whether Mr. Sorrell misused company
assets. The company confirmed it is investigating Mr. Sorrell, who
has denied any misconduct.
Madison Avenue has struggled to move beyond the perception that
the advertising world is hostile to women and lacks diversity. Ms.
Johnson's case helped reignite debate over workplace behavior in
the industry -- even before the broader #MeToo movement took off.
JWT is a storied ad agency whose clients include Macy's, Ford,
Kimberly-Clark and HSBC.
Ms. Johnson's lawsuit, filed in federal court in New York, named
as defendants Mr. Martinez, JWT and WPP.
It alleged she was subjected to a hostile work environment, and
that Mr. Martinez engaged in an "unending stream of racist and
sexist comments as well as unwanted touching and other unlawful
conduct." The complaint claimed that in conversations with
colleagues Mr. Martinez referred to personnel at airports as "black
monkeys" and "apes" who don't know how to use computers.
Write to Alexandra Bruell at alexandra.bruell@wsj.com and
Suzanne Vranica at suzanne.vranica@wsj.com
(END) Dow Jones Newswires
April 04, 2018 14:16 ET (18:16 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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