Steve Biegel claims Toyo Shigeta, Dentsu's top North American executive, forced him to visit a Czech brothel and a Japanese bathhouse.
He also alleges that Shigeta took a photograph up the skirt of the tennis star Maria Sharapova during a shoot for Canon.
Dentsu had argued that the case should be dismissed because Biegel failed to follow procedures established by the company to report sexual harassment incidents.
The judge's ruling allows Biegel's lawsuit to proceed, although no date has been fixed for a hearing.