Gabe Kaplan has agreed to hand over almost half his winnings to bankruptcy trustees of convicted conman Bradley Ruderman.
The Welcome Back, Kotter star was among several gamblers who took thousands of dollars from Ponzi scheme fraudster Ruderman during card games.
Bankruptcy trustees trying to recoup the cash Ruderman lost at the poker table have filed suit against those they claim won the money - and Kaplan has agreed to avoid legal proceedings by handing over $27,900 (£17,437) of his $62,000 (£38,750) winnings, according to TMZ.com.
The proposed settlement is yet to be agreed by a judge in California.
Spider-Man star Tobey Maguire is among those named in the lawsuit but insists he actually lost money to Ruderman and filed a countersuit last month (Aug11).