Overview

• Trinity Broadcasting filed a countersuit in U.S. Bankruptcy Court for the Northern District of Texas accusing Phil McGraw and Peteski of fraud and breach tied to a 10‑year, $500 million production and distribution agreement.
• TBN says the deal required 160 new 90‑minute episodes in exchange for roughly $50 million annually if performance conditions were met, yet alleges no episodes were delivered as it spent more than $100 million and up to $13 million per month.
• The broadcaster seeks damages, rescission, and court declarations on corporate control and content ownership, including a ruling that McGraw agreed to transfer the ‘Dr. Phil’ library and an injunction restoring TBN‑designated board members.
• The complaint details alleged stock‑swap maneuvers that diluted TBN’s stake, quotes McGraw describing a ‘gangster move,’ and notes the formation of Envoy Media one day before Merit Street’s Chapter 11 filing.
• Merit Street, already suing TBN, contends the network failed to secure national distribution, withheld required payments, and provided shoddy production services, with the court labeling the broader dispute anything but routine.