Dr. Phil McGraw is facing more legal trouble after Trinity Broadcasting Network filed a countersuit in federal court, accusing him of “reprehensible conduct” in a $500 million deal gone wrong.
As reported by Deadline, McGraw attempted to halt Chapter 11 bankruptcy proceedings for his Merit Street Media venture, citing the high cost of bankruptcy itself. But shortly after that, TBN hit back with its own claims, saying McGraw and his company Peteski Productions orchestrated “a years-long fraudulent scheme” to enrich themselves at the Christian network’s expense.
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“The response to TBN legitimately and lawfully defending itself from Peteski and McGraw’s bad-faith attacks is to cry foul because they do not like the true facts that they themselves now regretfully put at issue before this Court, revealing McGraw’s true illicit intent and wrongful conduct which he self-described as a ‘gangster move’ and as ’11th-hour poker,’” the suit states.
TBN alleges McGraw fabricated urgency and lied about viewership, ad revenue, library ownership and production costs to secure a lucrative agreement in early 2023.
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“Among other things, McGraw falsely represented to TBN that CBS would pay him $75 million per year to renew his contract and TBN must (1) immediately sign some form of binding agreement with Peteski and (2) immediately pay him $20 million as a gesture of good faith to show TBN’s ability to pay and commitment to the deal,” TBN’s lawyers said. “Anything less, McGraw claimed, would be a ‘deal killer.’”
The partnership launched in April 2024 with high hopes but lasted barely a year. Merit Street alleged earlier this summer that TBN “refused to honor its commitment to transfer its must-carry rights and thereby provide national distribution for the network,” effectively killing the venture.
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A representative for McGraw later responded, calling TBN’s countersuit “riddled with provable lies, and part of a lawfare litigation strategy designed to distract people so no one notices when TBN ultimately is held accountable for walking away from its commitments.”
TBN, however, is seeking damages, injunctions and stock amendments through the courts.
Prepared by Charisma Media Staff.
