Former KPBS News Director Terence Shepherd filed suit in San Diego County Superior Court alleging he was terminated in February after reporting a September 2025 broadcast that he believed exposed the station to possible enforcement action by the Federal Communications Commission.
The lawsuit, filed on May 19, names both KPBS and the San Diego State University Research Foundation as defendants. Shepherd alleges his dismissal violated California's whistleblower protections, which generally prohibit employers from retaliating against workers who disclose what they reasonably believe to be violations of state or federal law.
According to the complaint, the dispute stems from a Sept. 17, 2025 edition of KPBS' Evening Edition, during which reporter Alexander Nguyen delivered a live report from a protest outside Encinitas City Hall. Behind Nguyen, a protester displayed a sign reading "F*** ICE." Versions of the broadcast now available online appear to have the profanity obscured or blurred.
Shepherd alleges that after learning of the broadcast, he notified KPBS Chief Content Officer Nancy Worlie, News Editor Gina Diamante and senior producer Kim Swain about what he believed could constitute a violation of FCC rules governing profanity on broadcast television.
According to the complaint, Shepherd also questioned whether the protest backdrop had been intentionally staged for the live shot and recommended that Nguyen be terminated. He further requested an audit of the reporter's previous work, a request he claims management rejected.
The lawsuit alleges Worlie told Shepherd he was "grossly overreacting" and refused to pursue the matter further. Neither Worlie nor Nguyen commented publicly on the allegations, citing the pending litigation.
One of the more notable allegations in the complaint is that Shepherd says he continued receiving favorable performance evaluations after raising the issue. According to the lawsuit, a November 2025 review, roughly two months after he reported the alleged FCC concern, praised his ethics, leadership and stewardship of the newsroom. Shepherd contends that positive review undermines any suggestion that his subsequent dismissal resulted from poor performance rather than retaliation. He ultimately was informed in February that he was no longer serving as news director after approximately four years in the position.
Central to the lawsuit is whether the broadcast could have implicated FCC regulations. Federal law prohibits broadcasters from airing obscene content at any time and restricts indecent or profane material over the public airwaves during certain hours. The FCC evaluates complaints on a case-by-case basis, and enforcement actions can range from warning letters to monetary forfeitures. License revocation is authorized under federal law but is rarely pursued in practice.
Whether the appearance of a protest sign in the background of a live news broadcast would ultimately constitute an actionable FCC violation remains unclear and has not been determined by any court or regulatory agency.
In an internal email to staff reported by KPBS, General Manager Deanna Mackey acknowledged media coverage of the lawsuit but said the organization could not discuss pending litigation.
"Our commitment to providing San Diego with trusted local news is a priority," Mackey wrote. "KPBS' newsroom has more than 60 people who work tirelessly each day, as a team, to provide the community with thoughtful local news."
KPBS also disclosed that its own reporting on the lawsuit followed its internal protocol for covering matters involving the station, stating that no corporate executive or newsroom manager reviewed the story before publication.
Shepherd is seeking compensatory damages, punitive damages and a jury trial. The defendants have not yet responded to the allegations on the merits, and no findings have been made by the court. A hearing in the case is currently scheduled for October 23, according to court filings.
As with any civil lawsuit, the allegations contained in Shepherd's complaint represent his claims and have not been proven in court. KPBS has denied no specific factual allegation publicly, instead declining comment because the litigation is ongoing.
Originally published on June 30, 2026.
