Margera filed the lawsuit against Jackass star Johnny Knoxville, producer Spike Jonze, director Jeffrey Tremaine as well as Paramount Pictures, MTV, Dickhouse Entertainment and Gorilla Flicks.
Margera filed to dismiss the lawsuit in Los Angeles Superior court and it has been dismissed with prejudice, which means it cannot be filed again. According to TMZ the case was settled but the details of the settlement remain private.
Margera was originally in the fourth film of the franchise but was reportedly fired from it in August 2020 after he failed a drug test. He filed the lawsuit a year later, claiming Knoxville, Jonze and Tremaine convinced him to sign a "wellness" agreement while he was in a rehab facility in 2019, without consulting a lawyer.
The agreement required Margera to submit to daily drug tests, which he claimed he failed due to his consumption of Adderall prescribed for his attention deficit disorder. He and his lawyers claimed the dismissal was "discriminatory".
In a statement at the time of filing, Margera said: "My lawsuit isn't just about compensation. It's about treating people with mental health and addiction issues in an honest manner and not taking advantage of their disabilities to rip them off."
Knoxville replied to the claims: "We want Bam to be happy and healthy and get the help he needs. We tried to push that along. I think that's all I really want to say about it. I don't want to get into a public back-and-forth with Bam. I just want him to get better."
Although Margera was dropped from the film, he does still appear in one scene where the group are dressed up in marching band outfits and instruments while on a treadmill.
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