Charlie Elphickle, MP for Dover, has denied any wrongdoing and accused his party of informing the media about his suspension last night before informing him directly.
"The party tipped off the press before telling me of my suspension. I am not aware of what the alleged claims are and deny any wrongdoing," said the 46-year-old married MP in a statement on Twitter.
The Labour Party, however, has launched an investigation after a formal complaint was made against the Norwich South MP yesterday.
Lewis, a former shadow defence secretary, is alleged by the woman to have hugged her and squeezed her bottom at the event in Brighton in September.
Also Read
"Is the person mistaken? Have I given them a hug and this has been misinterpreted? I don't know. All I know is that I would not deliberately do that, do what's alleged. I completely deny that," Lewis said.
The Luton North MP, who was suspended on Thursday while an investigation is conducted, said he had only given Etemadzadeh a "brief, slight hug just before getting into my car".
The highest profile victim of the scandal to hit Westminster politics so far has been former defence secretary Michael Fallon, who resigned from his post this week saying his conduct may have fallen below the high standards expected.
It was widely speculated if it was a so-called "kneegate" incident, involving him touching the knee of a journalist many years ago, that had led to his resignation.
"Michael Fallon had to resign because of his behaviour towards women. One person with great courage made a complaint to No. 10 [Downing Street] of sexual assault. Theresa May made it very clear she took these allegations seriously and within hours he had gone," she said.
Her remarks came after it had emerged that the Leader of the House of Commons and Tory party colleague, Andrea Leadsom, had also complained about Fallon making "lewd" remarks at party meetings.
Fallon has strenuously denied the latest set of claims and stressed that Downing Street had not put any specific allegation to him before he stepped down as defence minister.
Both the Conservatives and Labour party are working on new policies to deal with sexual harassment in an attempt to get a handle on the crisis that is continuing to spiral out of control with fresh allegations emerging non-stop.
Prime Minister May is due to meet Opposition party leaders, including Labour leader Jeremy Corbyn, on Monday to discuss proposals to bring forward a new grievance system for Westminster staff and MPs.
Disclaimer: No Business Standard Journalist was involved in creation of this content