Actors Marion Ross, Don Most, Erin Moran and Anson Williams launched a $10 million (£6.5 million) suit against CBS last year, claiming that the company had withheld money from sales of Happy Days merchandise bearing their images.
CNN reports that the actors and the network have settled the case out of court, with the cast due to receive an undisclosed amount of money in damages.
The actors' attorney Jon Pfeiffer has released a statement saying: "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."
Anson Williams, who played Potsie on the show, also added: "I'm very satisfied with the settlement. And that's all I can say."
Former stars of the show Ron Howard and Henry Winkler were not involved in the suit.