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Phil McGraw’s longtime publicist has filed a lawsuit against the celebrity therapist, better known as Dr. Phil, on claims of wrongful termination and discrimination.
In a lawsuit filed Thursday in Los Angeles County Superior Court, Jerry Sharell said McGraw recruited him to continue working for him after he left CBS in 2023 and relocated to Dallas, where he planned to start his own television network, Merit Street Media.
But Sharell alleges in his complaint that he was “intentionally excluded” from the group of 20 employees who migrated to Texas because he is openly “homosexual,” and was later singled out before being put on hiatus.
The suit is the latest legal fight for McGraw. Last year his new network Merit Street filed for bankruptcy protection, a little more than a year after he launched the media startup, and then sued its distribution partner, Trinity Broadcasting Network.
The unraveling of Dr. Phil’s media venture was a blow to the celebrity therapist who built a reputation as one of the most trusted voices on television. But his fortunes faded amid a dying market for syndicated TV and clashes with a distributor and partner.
Last fall, a federal bankruptcy judge ordered the network liquidated, finding evidence that McGraw deleted text messages to conceal plans favoring certain creditors over others.
At the time, a spokesperson for McGraw’s production company vigorously denied the accusation that he destroyed evidence and said he was appealing the ruling.
McGraw later launched Envoy Media, prompting accusations the bankruptcy was filed in bad faith specifically to escape creditors and fund his new venture, which he denied.
Chip Babcock, a lawyer representing Envoy Media, disputed Sharell’s allegations, calling the lawsuit “an effort to avoid a pending arbitration to which Sharell contractually agreed which he has now violated in a number of ways. The company and Dr. Phil will vigorously defend these claims,” in a statement to The Times.
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“Jerry Sharell was put on hiatus over the summer as is common in this industry, especially with a media start up. He was not fired for any reason and certainly not because of his sexual orientation. These allegations against Envoy and Dr. Phil are made up out of whole cloth as he has a 25 year history of treating the LGBTQ+ communities with dignity and respect, including standing up for his guests who were attacked because of their sexual preferences.”
In his complaint, Sharell states that McGraw told him he would remain in California, saying, “you’re Hollywood.” However, the publicist said he came to the realization that “McGraw did not want him present in the building or attending meetings with TBN executives.”
