# Lawsuit against Phil McGraw for alleged discrimination

> Live situation record from CLSTR: https://clstr.news/situations/lawsuit-against-phil-mcgraw-for-alleged-discrimination
> Updated: 2026-08-27T00:20:21.000Z. Sources: 6. Developments: 2.

Former talk show host Phil McGraw and his media companies are facing a lawsuit in Los Angeles County Superior Court filed by former publicist Jerry Sharell. Sharell, who worked with McGraw for approximately a decade, alleges sexual orientation discrimination, wrongful termination, and failure to pay timely wages.

The complaint claims Sharell was excluded from the company’s relocation from California to Texas to launch Merit Street Media because he is openly gay. Sharell alleges he was told “you’re Hollywood,” which he believes was a coded comment regarding his sexuality, particularly as the company partnered with the Christian broadcaster Trinity Broadcasting Network. The lawsuit also describes a workplace environment that became overtly religious, alleging employees were asked to sign a “Statement of Faith” and participate in employer-led prayers.

Sharell further alleges his employment status was changed to an independent contractor, resulting in a 30% pay cut and loss of benefits. McGraw’s attorney, Chip Babcock, has denied the allegations, characterizing them as being “made up out of whole cloth” and stating that Sharell was placed on a standard hiatus rather than being fired. Recent reports indicate Merit Street Media has faced financial instability, with a judge ordering the company to be liquidated after denying Chapter 11 bankruptcy protection.

## Timeline

### 2026-08-27: Phil McGraw sued over alleged sexual orientation discrimination

Former publicist Jerry Sharell has sued Phil McGraw and his companies, alleging sexual orientation discrimination, wrongful termination, and wage violations following McGraw's move to Texas.

2 sources. https://clstr.news/cluster/phil-mcgraw-sued-over-alleged-sexual-orientation-discrimination

### 2026-08-21: Phil McGraw sued by former publicist for alleged discrimination

Phil McGraw and his media companies face a lawsuit from former publicist Jerry Sharell, who alleges sexual orientation discrimination, wrongful termination, and unpaid wages.

4 sources. https://clstr.news/cluster/phil-mcgraw-sued-by-former-publicist-for-alleged-discrimination

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Cite as: Lawsuit against Phil McGraw for alleged discrimination. CLSTR, https://clstr.news/situations/lawsuit-against-phil-mcgraw-for-alleged-discrimination