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.
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.
“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.”
Merit Street was a joint venture with the Trinity Broadcasting Network (TBN), the largest Christian-based network. Sharell said that he was given a copy of the Employee Handbook, and employees “were asked to sign a ‘Statement of Faith’ declaring their devotion to Jesus.”
Although he remained in L.A., starting in spring 2024 Sharell began traveling monthly to the Dallas headquarters of Merit Street, where he said many TBN employees now worked. During his first visit he alleged that a man known as “Pastor D” came weekly to pray with employees, leaving prayer cards on the desks of those who did not participate including that of Sharell’s.
Pastor D also led prayer services at an open house event for advertisers, prospective investors and media, that Sharell found “both disturbing and shocking, given he had never known Defendant McGraw to be overly religious,” according to the complaint.
During another visit, Sharell alleges that an IT employee noticed a photograph of Sharell while working on a staffer’s computer and said, “There’s too many of THEM around here. And it’s evil.”
While traveling on a private plane with McGraw, wife Robin McGraw and other individuals, Sharell claims he was answering emails and did not hear McGraw, who said, “Jeez, he’s gayer than a fruit basket and not listening.”
The publicist said that he worked for McGraw for 10 years until March 2026, “advancing, protecting, publicizing, protecting, and supporting” McGraw and his enterprises.
According to the suit, Sharell worked through the Merit Street bankruptcy and the subsequent establishment of Envoy Media, “receiving assignments and direction” from McGraw, dealing with executives and securing media placements among other duties.
After the company transitioned to Envoy Media, Sharell states in his lawsuit he went from being treated as an employee with benefits to being characterized as an independent contractor, losing his benefits, including health coverage and his compensation was reduced by 30%.
Sharell alleges that although his job remained the same, that he felt “compelled” to accept the new arrangement while under “a great deal of duress and stress,” during which he said he was “reminded” by Envoy Media Chief Executive Ken Solomon that McGraw valued “loyalty.”
Then, in March, Sharell received a call from Solomon informing him that his position was being put on “hiatus” due to “financial considerations,” even though no other employees were put in hiatus or had their salaries reduced.
He said he told Solomon that he felt he was “being singled out or targeted,” according to the lawsuit.
