Happy Days - Merchandising Revenue Lawsuit

Merchandising Revenue Lawsuit

On April 19, 2011, five Happy Days co-stars, Erin Moran, Don Most, Marion Ross, Anson Williams and the estate of the late Tom Bosley, who died in 2010, filed a $10 million breach-of-contract lawsuit against CBS, which owns the show, claiming they had not been paid for merchandising revenues owed under their contracts. The cast members claimed they had not received revenues from show-related items, including comic books, t-shirts, scrapbooks, trading cards, games, lunch boxes, dolls, toy cars, magnets, greeting cards and DVDs where their images appear on the box covers. Under their contracts, they were supposed to be paid five percent from the net proceeds of merchandising if their sole image were used, and half that amount if they were in a group. CBS said it owed the actors $8,500 and $9,000 each, most of it from slot machine revenues, but the group said they were owed millions. The lawsuit was initiated after Ross was informed by a friend playing slots at a casino of a "Happy Days" machine on which players win the jackpot when five Marion Rosses are rolled.

In October 2011, a judge rejected the group's fraud claim, which meant they could not receive millions of dollars in potential damages. On June 5, 2012, a judge denied a motion filed by CBS to have the case thrown out, which meant it would go to trial on July 17 if the matter was not settled by then. In July 2012, the actors settled their lawsuit with CBS. Each received a payment of $65,000 and a promise by CBS to continue honoring the terms of their contracts.