suit thursday

Merit Street Media, the TV network launched last year by talk show host Phil McGraw, has filed for bankruptcy protection from creditors and is suing its distribution partner, Trinity Broadcasting Network.

McGraw’s company filed the suit Thursday in U.S. Bankruptcy Court claiming Fort Worth-based Christian media firm Trinity, or TBN, failed to meet its obligations to provide studio space and secure TV stations and pay TV distributors to carry Merit.

McGraw, who hosted the successful syndicated talk show “Dr. Phil” for 21 years, entered a joint venture in 2023 with Trinity, which agreed to carry Merit on its TV stations across the country and provide production services.

But according to the suit, McGraw is funding the struggling venture out of his pocket — shelling out $25 million over six months. The company laid off 40 employees in June and had to terminate its TV deal with Professional Bull Riders after failing to pay its rights fee.

Merit Street’s Chapter 11 bankruptcy filing lists the company’s liabilities at $100 million to $500 million. The document, filed in Texas, gives the same range for the value of Merit Street’s assets. Like TBN, Merit Street is based in Fort Worth.

TBN did not respond to a request for comment on the suit.

Merit Street carries “Dr. Phil Primetime,” in which the host delivers right-of-center political commentary as well as guest interviews. The program was put on summer hiatus when the June layoffs were announced.

McGraw recently attracted attention when the show had a camera embedded with Immigration and Customs Enforcement during immigration raids in Los Angeles.

McGraw, once a practicing psychologist, became a self-help guru propelled to fame by Oprah Winfrey, who hired him to help prepare her for a libel case brought by the Texas Beef Group in 1996. Since leaving his daily talk show, he has emerged as a political commentator who is supportive of President Trump.

Merit also has a nightly newscast and a true crime program featuring veteran legal commentator Nancy Grace.

The lawsuit claims Merit’s operations were hampered by TBN’s contracted technical services, which it described as “comically dysfunctional.” Teleprompters and monitors allegedly blacked out during live programs with a studio audience.

TBN was using “amateur” video editing software and Merit staff were unable to use phones in the studio due to poor cellphone coverage, the suit added.

McGraw’s company, Peteski Productions, launched Merit in a joint venture with TBN, which offers religious programming to its TV stations and affiliates across the country.

As the majority owner, TBN was required to provide all back office and production services for Merit. TBN was also obligated to cover the cost of distributing Merit’s programs on its outlets and pay TV providers, the suit said.

The lawsuit claims TBN failed to provide that service, forcing Merit Street to enter its own agreements to get the network carried on TV stations and cable and satellite providers at a cost of $96 million. TBN’s failure to pay led to a number of TV stations to drop Merit Street programming.

The suit also claims TBN failed to deliver promised marketing and promotional services, only providing minimal social media advertising.

TBN missed a $5-million payment to Merit in July 2024, which led the partners to change the terms of their arrangement, the complaint said. Merit became the 70% owner, with TBN taking a 30% stake. But the suit claims TBN still failed to meet its contractual obligations.

The suit said that TBN’s failure to fund Merit forced McGraw and Peteski to provide $25.4 million to finance the network’s operations from December 2024 to May 2025.

TRENTON, N.J. — The Trump administration sued four New Jersey cities over their so-called sanctuary city policies aimed at prohibiting police from cooperating with immigration officials, saying the local governments are standing in the way of federal enforcement.

The Justice Department filed the suit Thursday against Newark, Jersey City, Paterson and Hoboken in New Jersey federal court. The lawsuit seeks a judgment against the cities and an injunction to halt them from enacting the so-called sanctuary city policies.

“While states and local governments are free to stand aside as the United States performs this important work, they cannot stand in the way,” the suit says.

It’s the latest case from President Trump’s administration against sanctuary policies. The administration also sued Chicago, Denver, the state of Colorado, and Rochester, N.Y.

There is no official definition for sanctuary policies or sanctuary cities. The terms generally describe limited local cooperation with Immigration and Customs Enforcement. ICE enforces U.S. immigration laws nationwide but sometimes seeks state and local help.

Messages seeking comment were left Friday with the affected cities.

Paterson Mayor Andre Sayegh said his city would fight the suit, calling it an “egregious attempt to score political points at Paterson’s expense.”

“We will not be intimidated,” he said in a text message.

Hoboken Mayor Ravi Bhalla said in a statement the city prides itself on its inclusivity.

“The City of Hoboken will vigorously work to defend our rights, have our day in court, and defeat the Trump Administration’s lawlessness. To be clear: we will not back down,” he said.

The mayors of all four cities are Democrats.

New Jersey’s attorney general adopted a statewide Immigrant Trust Directive in 2018, which bars local police from cooperation with federal officials conducting immigration enforcement. The policies adopted by the four cities are similar.

The 3rd Circuit Court of Appeals agreed with a lower court that New Jersey’s statewide policy could stand, but it’s unclear how that court’s order might affect the government’s case against the four cities.

Catalini writes for the Associated Press.