Dr. Phil continues to face a massive legal battle after a countersuit by Trinity Broadcasting Network.
According to the Hollywood Reporter, popular TV host Dr. Phil McGraw has officially lost the trial that will determine the fate of his media organization, Merit Street Media. As the outlet noted, Judge Scott Everett denied McGraw’s request to file for Chapter 11 bankruptcy and instead ordered him to file for Chapter 7 liquidation.
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McGraw originally filed for chapter 11 bankruptcy at the same time as when Merit Street sued the Trinity Broadcasting Network (TBN) for “sabotage and financial misconduct,” as Charisma previously reported. McGraw’s lawsuit claimed that TBN dismissed contractual terms and undermined the unity between the two media entities. Following the explosion of this $500 million deal, TBN filed a countersuit for “reprehensible conduct.” TBN claimed that McGraw lied about statistics like library ownership, production costs, ad revenue and viewership in order to secure a deal.
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Now, as McGraw faces the court’s decision regarding his filing for bankruptcy, there allegedly was “evidence indicating that Dr. Phil…deleted incriminating text messages and that he’d try to game the bankruptcy by paying certain favored creditors over others,” according to the Hollywood Reporter. Judge Everett also stressed the importance of honesty and trust, noting that McGraw’s “business was as dead as a doornail when the bankruptcy was filed.”
A spokesperson for McGraw said that, “We take great exception to the court’s improper assertions regarding the alleged destruction of evidence, which simply did not happen…”
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As the legal dust settles, Dr. Phil’s once-promising media venture now faces an uncertain future under court-ordered liquidation. The high-profile battle between Merit Street Media and TBN serves as a stark reminder that even media empires can crumble when trust and integrity are called into question.
Abby Trivett is a writer and editor for Charisma Media and has a passion for sharing the gospel through the written word. She holds two degrees from Regent University, a B.A. in Communication with a concentration in Journalism and a Master of Arts in Journalism. She is the author of the upcoming book, The Power of Suddenly: Discover How God Can Change Everything in a Moment.
