Actors Marion Ross, Anson Williams, Don Most and Erin Moran and the widow of Tom Bosley launched a $10 million (£6.3 million) lawsuit against CBS network chiefs last year (11), accusing them of committing fraud by withholding money from sales of Happy Days-themed memorabilia which feature their images.
They were handed cheques ranging from $6,000 (£3,750) to $6,500 (£4,063) as compensation, but the stars vowed to press ahead with their case.
They suffered a setback in October (11) when a Los Angeles Superior Court judge threw out the fraud claim, but the fight continued as a breach of contract case and was due to go to trial on 17 July (12).
However, both parties have now come to an agreement, with the cast all set to receive an undisclosed sum.
A statement from the actors' attorney Jon Pfeiffer reads, "We have settled our lawsuit with CBS and Paramount. The terms of the settlement are confidential, but we are satisfied with the outcome. We will continue to receive all of the merchandising royalties promised to us in our contracts."
And Williams, who played beloved character Potsie, appeared to echo the same sentiment, telling CNN.com, "I'm very satisfied with the settlement. And that's all I can say."
Former Happy Days stars Henry Winkler and actor-turned-director Ron Howard were not part of the legal action.