Guaraldi's relationship with Fantasy Records began to sour by 1965 after it was learned he was receiving only five percent of every record sale while Fantasy retained the remaining 95 percent. He sued in early 1966 in an effort to sever all relationships with the label; Fantasy promptly countersued. Fantasy executive Saul Zaentz became president in 1967, eventually buying the company from original owners Max and Soul Weiss in December of that year. The sale of Fantasy Records to Zaentz resulted in both Guaraldi and the label dismissing the twin lawsuits, leaving Guaraldi a free agent. 35 years after Guaraldi's death, Fantasy Records and its parent company Concord Music were sued by Guaraldi's children for engaging in "a system" of "serving false and deceptive statements while underreporting units sold and underpaying royalties." Their lawsuit, filed in December 2011, claimed a private accountant uncovered a discrepancy of at least $2 million for the years 2005–2010 alone. When asked if the alleged wrongdoing goes back decades further, the Guaraldi family's attorney Alan Neigher responded, "Well, we hope it does."