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J Walter Thompson CEO quits in wake of bias lawsuit

NEW YORK, March 17 (Reuters) - The chief executive of the J. Walter Thompson advertising agency resigned on Thursday, one week after being accused by a female subordinate in a lawsuit of making a stream of racist and sexist slurs, subjecting her to unwanted touching, and other "abusive" behavior.

WPP Plc (LSE: WPP.L - news) , J. Walter Thompson's parent, said Gustavo Martinez resigned "by mutual agreement," and that his resignation was "in the best interest" of the ad agency.

Tamara Ingram, who had been WPP's chief client team officer, was named to replace Martinez, effective immediately.

A spokesman for WPP had no immediate additional comment.

The lawsuit over Martinez's alleged behavior was filed on March 10 by Erin Johnson, the ad agency's chief communications officer, in the U.S (Other OTC: UBGXF - news) . District Court in Manhattan (Hamburg: 32U.HM - news) . (Reporting by Jonathan Stempel in New York; Editing by Chris Reese)