[EDRM Editor’s Note: This article was first published here on December 8, 2025. The opinions and positions are those of Michael Berman.]
In USA Today, Anthony Robledo reports that Dr Phil bankruptcy case filing has accusations of deleting texts (USA Today Oct. 29, 31, 2025), citing Variety and The Hollywood Reporter
It is reported that: 1) the Bankruptcy Judge found that text messages had been improperly deleted; and, 2) the finding has been, and is, disputed and an appeal will be noted.
Because I was unable to find the court’s decision on Westlaw,1 this blog relies entirely on media reports. It is also limited to a single text message issue.
The USA Today article states:
The court cited evidence showing McGraw deleted an “unflattering” text message regarding a “gangster move” that allegedly incriminated him of trying to avoid paying certain creditors through the Chapter 11 route, Variety reported.
Anthony Robledo, Dr Phil bankruptcy case filing has accusations of deleting texts (USA Today, Oct. 29, 31, 2025).
Winston Cho reported in Dr. Phil Loses Trial Over His Media Startup’s Bankruptcy (Hollywood Reporter Oct. 28, 2025).
In the decision, the court pointed to evidence indicating that Dr. Phil, whose surname is McGraw, deleted incriminating text messages and that he’d try to game the bankruptcy by paying certain favored creditors over others.
“Candor to the court is critical,” [Judge] Everett said in the bench ruling.
Id.
A spokesperson for Mr. McGraw’s ‘production banner,” said that there will be an appeal. Id.
“We take great exception to the court’s improper assertions regarding the alleged destruction of evidence, which simply did not happen,” the spokesperson said. “We will not let this stand given all that Dr. Phil and Peteski Productions have done to protect Merit Street employees, distributors, and other interested parties and to resolve this unfortunate situation.”
Id.
The Variety article also indicated that there will be an immediate appeal. Todd Spangler, Judge Rules Against Dr. Phil in Merit Street Bankruptcy, Orders Chapter 7 Liquidation (Variety Oct. 28, 2025). Variety reported that: “The judge also found that during discovery in the case, McGraw had destroyed evidence that was ‘unflattering.’” Variety wrote:
TBN also filed a motion to impose sanctions on Peteski, alleging Peteski failed to produce requested documents — and [Judge] Everett, in his ruling, found that McGraw had deleted an “unflattering” text message in which McGraw described his strategy to “wipe out” TBN and PBR’s claims via the Merit Street bankruptcy. McGraw evidently did so to avoid having it produced in the court proceeding, Everett said, in violation of the judge’s orders.
Id.
Variety reported:
(In Peteski’s Aug. 12 filing with the bankruptcy court, McGraw’s lawyers said the “gangster move” statement “was made by misrepresenting an email [from Dr. Phil] which TBN improperly and illegally accessed off its server which it was hosting for the Debtor as part of its contractually obligated services” under the JV agreement; the lawyers did not provide context for the “gangster move” comment.)
Id.
Variety also noted:
In a statement to Variety, a spokesperson for McGraw’s Peteski Productions said, “We are filing an immediate appeal. We take great exception to the court’s improper assertions regarding the alleged destruction of evidence, which simply did not happen. We will not let this stand given all that Dr. Phil and Peteski Productions have done to protect Merit Street employees, distributors, and other interested parties and to resolve this unfortunate situation. Today’s ruling found that Dr. Phil became the sole director of Merit Street long after the company became overwhelmed by debt thanks to Trinity Broadcasting’s mismanagement. Dr. Phil is proud of his efforts to help Merit Street through this process but is also pleased that he can now devote his time and energy to his new network, Envoy.”
In another article, Fox4 reported:
“At this point, and notwithstanding able council [sic] for the parties, the chapter 11 is a broken, three-legged stool,” [Judge] Everett said. “The first leg is Mr. McGraw, who deletes unfavorable text messages he doesn’t want me to see…..”
Fox 4 also reports that Mr. McGraw’s attorneys “take great exception to the court’s improper assertions regarding the alleged destruction of evidence, which simply did not happen.” Steven Ardary, Dr. Phil’s media company ordered to liquidate in bankruptcy case | FOX 4 Dallas-Fort Worth (Oct. 30, 2025).
Entertainment reported:
In court, [Judge] Everett reviewed details of the case, including McGraw’s deletion of a text message that was part of discovery in the case, an action that the judge said was considered in his ruling.
“Mr. McGraw’s actions violated not only the discovery order…but also a broader principle that the debtors, board members, or de facto officers or agents should not destroy property of the estate to help them in pending litigation,” Everett said.
Raechal Shewfelt, Dr. Phil loses major ruling in bankruptcy case, TV network is ordered into liquidation (Entertainment, Oct. 29, 2025).
See generally Dr. Phil loses control—judge orders $181 million empire liquidated after deleted texts found (MSN).
In light of the dispute, and with no judicial opinion available for review, this blog expresses no opinion on the merits of this issue.
Notes
- It appears that it was an oral ruling. Todd Spangler, Judge Rules Against Dr. Phil in Merit Street Bankruptcy, Orders Chapter 7 Liquidation (Oct. 28, 2025)(“… Judge Scott W. Everett of the U.S. Bankruptcy Court for the Northern District of Texas said at a hearing Tuesday in which he announced his ruling….”). ↩︎
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