Dr. Phil McGraw has suffered a major courtroom setback, with a judge accusing the TV star of destroying evidence to gain an advantage.
On October 28, U.S. Bankruptcy Judge Scott Everett ordered Dr. Phil’s struggling television startup, Merit Street Media, into liquidation under Chapter 7. The judge ruled that creditors would be better off if an independent trustee sold off the company’s assets.
During the hearing, Judge Everett slammed the 75-year-old host, citing court evidence that suggested he deleted incriminating text messages and attempted to favor certain creditors over others. “Candor to the court is critical,” the judge said. He also noted that Merit Street Media “was as dead as a doornail” when the bankruptcy was filed, and that Dr. Phil “believed he was calling the shots.”
Despite the ruling, Dr. Phil’s team insists the fight isn’t over. A spokesperson for his production company, Peteski, said, “We respectfully disagree with the court’s ruling and take issue with its comments concerning Dr. Phil McGraw. Dr. Phil is a leader of the highest integrity… We are reviewing all of our options regarding an appeal, which is likely.”
The courtroom drama stems from a $500 million deal between Dr. Phil and Trinity Broadcasting Network (TBN). Merit Street Media filed for Chapter 11 bankruptcy earlier this summer, and just one month later, TBN countersued, accusing Dr. Phil of “reprehensible conduct” and trying to back out of the deal.
Court documents reveal that Dr. Phil once referred to his strategy as a “gangster move” designed to reduce TBN to a minority stake. The judge noted that he later deleted a text related to wiping out claims by TBN and another creditor, Professional Bull Riders, in an apparent attempt to hide it from the court.
Dr. Phil took the stand last month to defend himself, insisting he had done everything possible to keep Merit Street Media afloat. “I’m like the little engine that could,” he said, adding that claims the bankruptcy was a setup for his new venture, Envoy Media, were “absurd.”
The TV host recently launched his 24/7 Envoy TV network with Charter, calling the project a “flagship” for his brand.
Even before this legal battle, Dr. Phil made headlines for tagging along with Immigration and Customs Enforcement (ICE) in Chicago, confronting a man during an arrest that he shared on X. The host praised law enforcement for taking action against a convicted sex offender, posting, “Time to take our country back!”
With the Chapter 7 liquidation now in motion, Dr. Phil and his team are preparing to appeal the court’s decision, keeping the drama far from over.
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