Sources Say ABC's Steve McPherson Resignation Linked to Sexual Harassment Inquiry

The resignation this week of ABC entertainment honcho Steve McPherson was surprising enough, but now the affair has taken an ugly turn.

According to The Hollywood Reporter, McPherson, who's led the network for six years, resigned as he was the subject of an ongoing, formal investigation surrounding charges of sexual harassment.

McPherson's attorney, Tom Hoberman, issued a statement to THR which, curiously, didn't include specific denials of the rumors surrounding an investigation:

"Upon Steve McPherson returning to work from his vacation on Monday, he made a voluntary decision to resign and ABC accepted his resignation," read Hoberman's statement. "It is not uncommon for high level executives to be the subject of gossip and innuendo. That would include rumors of internal situations which can easily be misinterpreted or misrepresented. Seems like it goes with the territory, and there is nothing further to discuss."

ABC also didn't deny the rumors, and responded to questions by simply re-issuing the statement they made when McPherson resigned on Tuesday:

"Steve McPherson today submitted his resignation as President, ABC Entertainment Group, and the Company accepted. Mr. McPherson said, 'I want to thank the wonderful team of individuals who have worked with me throughout my time here and wish them nothing but the best.' A replacement for Mr. McPherson will be announced shortly."

McPherson's resignation was particularly surprising given the timing, as ABC and the other broadcast and cable networks are presenting their fall programming lineups to TV critics this week in Los Angeles during the annual summer Television Critics Association tour.

But THR's sources say several complaints of sexual harassment had been filed against McPherson, and that a formal investigation had begun three weeks before he resigned.

The complaints are said to involve both network executives and on-air talent at ABC, and to include e-mails as well as an incident that took place during a company retreat.

Meanwhile, whatever the outcome of the investigation, McPherson's departure will have an impact on ABC's efforts to move up from behind Fox and CBS in the ratings, since he was responsible for developing several of the network's biggest recent hits, including, as TV Squad reported yesterday, 'Lost,' 'Modern Family,' 'Desperate Housewives,' 'Grey's Anatomy' and 'Dancing With the Stars.'

As for McPherson replacements, ABC Family head Paul Lee is thought to be the main contender.