Dr. Phil McGraw‘s TV network Merit Street Media has filed for bankruptcy and a lawsuit against its former partner, Trinity Broadcasting Network (TBN).
On July 2, the former Dr. Phil host’s company filed for Chapter 11 bankruptcy protection in addition to suing TBN — alleging a breach of contract and a breach of fiduciary duty— in Texas, Variety reported.
The lawsuit claims TBN “abused its position as the controlling shareholder,” allegedly resulting in Merit Street Media being forced to “pay or incur obligations to third parties in excess of $100 million.”
“These failures by TBN were neither unintended nor inadvertent,” the document reads.“They were a conscious, intentional pattern of choices made with full awareness that the consequence of which was to sabotage and seal the fate of a new but already nationally acclaimed network.”
Additionally, the lawsuit claims the “most egregious impact is TBN’s conscious and knowing choice to cause Merit Street to lose its national distribution by withholding distribution payments despite repeatedly acknowledging those distribution payments were 100% TBN’s sole responsibility.”
It continued, “Simply put, as a result of TBN’s conduct, Merit Street has nowhere to send its broadcast signal and nowhere to air its programming no matter how great it may be.”
The lawsuit claimed that TBN’s production equipment was “comically dysfunctional,” with screens and teleprompters that allegedly blacked out amid live shows, a control room that operated out of a truck, an unusable app for viewers and sub-par video editing software, per Variety. Furthermore, Merit Street staff frequently were allegedly unable to make phone calls from the studio because of poor cell coverage.
Per CNN, TBN also allegedly caused the company CrossSeed to loan $25 million to Merit Street and then assigned a promissory note to TCT Ministries, also named in the lawsuit.
Merit Street is seeking damages and the cost of its legal fees.
Dr. Phil became a household name after appearing on The Oprah Winfrey Show in the late ’90s. In 2023, he launched Merit Street Media, telling the New York Post it would be “a destination network that you can turn on in the morning and leave on.”