Bam Margera Settles Jackass Suit Against Johnny Knoxville, Paramount

Bam Margera has settled his wrongful termination lawsuit against Johnny Knoxville, Spike Jonze, Jeffrey Tremaine along with Paramount Pictures, MTV, Dickhouse Entertainment and Gorilla Flicks.

Bam had sued because he claimed he was forced to sign an agreement he called psychological torture, with so many conditions it was impossible to comply. As a result, he claims, he was fired.

According to a new court doc, obtained by TMZ, Bam is asking to dismiss the lawsuit ... and all signs point to a settlement. The terms of the settlement remain private.

Bam claimed in the lawsuit he was pressured into signing a "wellness agreement" while he was in rehab in 2019 ... this was a condition to his participation in the "Jackass Forever" flick. Bam says because of the circumstances he didn't have an opportunity to run it by a lawyer.

The agreement required Bam to submit to regular drug and alcohol tests and he was also forced to take various Rx drugs ... drugs he claims left him depressed and drained.

Bam did not comply -- he tested positive for Adderall -- and was booted from the production. He says what made it particularly unfair was that doctors had prescribed the drug for him for a decade.